Futures and options - turnover computation

71 lakhs is the answer

sorry I misunderstood your question

As per your question net loss is 44 lakh and net profit is Rs 27 lakh. So loss to be carried forward is Rs. 17 lakh only , not Rs. 44 lakh.

Regarding its disclosure in ITR, put the profit figure of Rs. 27 lakh on the Income side and loss of Rs. 44 lakh on the expenditure side. The net result of Rs. 17 lakh will be loss and will be allowed to be carried forward accordingly. Please note the Turnover as computed by you is for determining applicability of tax audit only and not for reporting in ITR

unless you get the accounts audited u/s44 ad, you will get defective return notice

Tax audit is required if presumptive income scheme without maintaining books of accounts is followed or say if ITR 4 is filed. If ITR 3 is filed with full pl and balance sheet details no need for tax audit

Thanks a lot. I understood now.

I think he is not liable for tax audit as he has incurred a loss and also his total income is below basic exemption.