Income Tax Audit Rules for Derivative Traders

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Srinivasan

ASM

21 Points Posted on 12 June 2011

Hi ! I am a Salaried Employee with Salary Income of Rs 21 Lakhs. I have been dealing in F&O Trades where the Turn over is Rs 18 Lakhs and Loss is Rs 1.8 Lakhs for AY 2011-12. I have STCG of Rs 20000 by way of short term sales of Shares and other Income of Rs 12000 by of Interest on Bank FDs. I have doen e filing for previous years and has Carry Forward Losses. I have not done Auditing of my accounts for previous years. However, my accounts are maintained as these are done online.

Now My query is, Shall I have to do Audit for AY 2011-12 under new rules for 44AD as the income declared is less than 8%?

I will be filing ITR 4 E returns and require clarity whether Audit of Accounts are required or not ?

Replies (3)

CA. ANKUR JAIN

CA.....

2294 Points Posted on 12 June 2011

Section 44AD is applicable on business income, assuming you are not trading in F&O as broker you doesnt have any busines..........

so u need NOT to get your accounts audited since 44AD is not applicable in your case(so no question of lower than 8%)

M. N. JHA

6678 Points Posted on 12 June 2011

Yes, as per my opinion since u haveing F&O Turnover of Rs. 18 lacs on which loss is rs. 1.8 so if u want to carried forward then Tax Audit is compulsory. . . . . . . . . . .