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F&o- loss- tax audit

siva andhavarapu (ca final) (388 Points)

23 August 2018

HAI

IF A PERSON HAS F&O OPERATIONS RESULTS IN LOSS AND ALSO VERY FEW TRANSACTIONS HE DID.THEN WHAT IS THE TAXABILITY AND ALSO WHETHER TAX AUDIT IS APPLICABLE FOR THAT PERSON ?-(BOOKS MAINTAINED)

*SOME CA'S GAVE AN OPINION THAT TAX IS APPLICABLE.

URGENT

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6 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160332 Points)
Replied 23 August 2018

1. Asessed under head 'PGBP'; its non-speculative nature.

2. Loss can be set off with other heads of income, except 'salary'

3. If total income exceed BEL, tax audit applicable.

4. If turnover is not high, better to declare 6% profit margin, to avoid tax audit.

siva andhavarapu (ca final) (388 Points)
Replied 23 August 2018

SIR TQ FOR REPLY,

ALREADY HE DID A MISTAKE BY FILING ITR3 BY SELECTING NO TAX AUDIT OPTION.NOW CAN HE REVISE A RETURN AND CAN FILE ITR4?.AND ALSO PLS TELL FOR 6% CALICULATION HOW THE TURNOVER TO BE CALICULATED?

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160332 Points)
Replied 23 August 2018

1. Non-speculative transactions (Futures and options)

The total of favorable and unfavorable differences shall be taken as turnover
Premium received on sale of options is also to be included in turnover
In respect of any reverse trades entered, the difference thereon should also form part of the turnover.

More over check the broker's consolidated statement for turnover amount.

2. Yes, you can revise with 6% of the turnover as presumptive income u/s. 44AD.