Krunal (Director) (23 Points)
23 March 2019Hello !!
Do Audit Is Required For F&O ( Options Trade ) ??
My Turnover For Options Trade Is 1.14 Crs ( I.e Options Value * Qty ) And I Have Made loss Of 85,000 - 15,000 ( Profit From Delivery Treading ) Hence Loss Of 70,000/-
So Do I Need Audit? ( If Yes Then What Will It Cost ?)
Regards.
Rahul Rustagi
(Student CA Final )
(310 Points)
Replied 23 March 2019
Krunal
(Director)
(23 Points)
Replied 24 March 2019
Achyut Mhatre
(Owner)
(275 Points)
Replied 24 March 2019
As per sec. 44AD(5) of IT act, if your net income is above basic exemption limit, tax audit will be mandatory.
Rahul Rustagi
(Student CA Final )
(310 Points)
Replied 24 March 2019
Nikhil Kaushik
(Fellow CA)
(84917 Points)
Replied 19 April 2019
the turnover is to be calculated as under:
1. Sell side of Options Plus
2. Absolute value of all profits and losses.
This should ideally lead to a much larger turnover in your case. Once you cross 1 cr turnover but still below 2 cr, the only option for avoiding audit is to declare presumptive profit under 44AD. So ideally go for the audit regardless of any other opinion as it would cost much less than presumptive profit taxation.
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