Dear Tax Experts,
I need guidance on applicability of tax audit in following scenario -
There is one assessee who has a profit from intra day trading activity of 80,000 (Speculative) and a Loss of 90,000 from F&O (Futures and Options) trading (Non Speculative). So, there is net loss from business (PGBP) of 10,000 (80,000 - 90,000). Total Trading Turnover is INR 14,75,000.
Due to other incomes (other than PGBP), the assessee's income has crossed Basic Exemption Limit.
As per my view tax audit is applicable (Reason: There is net loss from PGBP, even though turnover has not crossed the limit of 1 Crore).
Need your guidance if my opinion in this regard is correct or not.
Thanking you in Advance.
Dhrunil Bhatt
CAclubindia
