I have a loss in future & option trading of 13 lakh on turnover of 30 lakh in this case tax applicable?
and even I have other in come of professional fees which I show under section 44ADA.
Future and option loss 13lakh on turnover of 30 lakh Tax audit applicable?
Replies (5)
Quick Summary
Unless he has opted out of presumptive assessment in any preceding five years, tax audit is not mandatory.
Tax audit is not mandatory if you haven't chosen 44AD or 44ADA in the past. Also, you can carry forward these losses without audit, but you need to fill your balance sheet and trading account. If you need any help, then please check out your inbox.
Ok sir thanks you
Most welcome.
F&O loss and audit:
• F&O loss is a non-speculative business loss. No tax is payable on a loss. It can be set off against other income (except salary) this year, and the balance carried forward 8 years (file by the due date).
• Turnover (ICAI GN 2022: absolute sum of profits and losses per trade) of Rs 30 lakh is far below Rs 10 crore. Tax audit under 44AB(a) isn't required.
• 44AB(e) applies only if you're under the 44AD(4) lock-in (opted out of 44AD after opting earlier, within 5 years). If you never opted for 44AD, no audit.
• Maintain books (44AA) if income exceeds Rs 2.5 lakh or turnover exceeds Rs 25 lakh. File ITR-3.
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