F&o trading and audit - pls check my calculation?

Others 722 views 3 replies

Jayesh

Proprietor

141 Points Joined March 2012

Dear Friends, I have 1 lakh annual salary and some investment income (share + FD + Mutual Fund). In addition, I bought and sold a few single stock futures throughout the financial year.

Based on the the aggregation of difference method (Section 44AB),

Total Turnover = Rs 2 Lakhs

Total Profit = Rs 13 thousand.

My options:

1.) Declare Rs. 16,000.00 (8% of 2 lakhs) as deemed profit and no audit required.

2.) Declare Rs 13 thousand as profit, but will need to get audited since 13 < 16 (8%)

3.) No other option: If I declare the actual Rs 13 thousand as profit, audit has to be done.

Is the above correct?

Thanks, Jay

Replies (3)

First of its not section 44 ad and not 44 ab. Your income income don't seem to exceed gross total income so just chill. You are not required to file the return compulsarily. Yaa you can go for assumption of 44ad showing 8% deemed income without any risk.

Jayesh

Proprietor

141 Points Joined March 2012

Hitesh - Thanks for your reply.

So, if at the end of FY, my turnover in F&O is 80lakhs and LOSS in F&O is 2Lakhs, I will have to get audited if I want to show the actuals. Else, I will have to declare 8% of turnover (6.4LAKHS) as deemed profit and pay tax on it. Correct?