Is it mandatory to show f&o losses

If every thing were calculated correctly, you required to conduct tax audit of your books of accounts u/s 44AD as your total income(including salary) is more than the taxable limit under income tax act. And it is mandatory to maintain your books of accounts.

whether you wish to carry forward losses or not is a separate issue.  Non-disclosure of business activities in the tax return is a different matter. What you are suggesting is a wilful violation. consider it this way - you have 1 cr turnover and you have opted not to show it at all.  But the income-tax department anyway knows about it becuase of AIR disclosure by your broker.  As you have not done the audit, AO will be within his powers to invoke presumptive taxation and charge 8% of your turnover to income-tax.

Hi sir, consider my case too. Is audit required in this case too?

Made loss in F&O and intraday trading -220000 Made gain by selling shares kept for short term (less than 12 months) +180000 Only income is from FD interest. +132000 Turnover of (FO+intraday+ short term share trading) is 80 lakhs. Is audit required in my case? Can I avoid it by not declaring losses in F&O and intraday and simply show 180000+FD interest as my income and pay tax on it. Will 15% be charged in 180000 profit of short term trading? 

 

your losses will get adjusted against the FD income and STCG. the balance income will below the taxable limit, hence not audit. File ITR-3. In case you need professional help for filing the return, mail me at ca.nikhilkaushik @ gmail.com