In the assessment year 2023-24, my Futures and Options(F&O) total turnover is around 56 lakh, and I have realized a profit of 10,000 rupees. Given that my profit is below 6% of the turnover and my total income exceeds 15 lakh rupees, is it necessary for me to undergo an audit?
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Query regarding Audit on F&O Trade
Replies (5)
Quick Summary
No. not mandatory if not opted out of section 44AD in any of the preceding FIVE years.
This is the first time - I am dealing with F&O and I have not availed sec 44AD in the last 5 years.
Does this means, I need to undergo an Audit ?
I got answer in the following thread:
https://www.caclubindia.com/experts/details.asp?mod_id=2853079
Thank you so much sir :)
You are welcome.
F&O turnover Rs 56 lakh: audit only in limited cases:
• Tax audit under 44AB(a) applies if business turnover exceeds Rs 10 crore (where cash receipts and payments are 5% or less, as is true for F&O). At Rs 56 lakh, no audit.
• 44AB(e): audit is needed only if you opted for 44AD in an earlier year and then opted out within 5 years, declaring lower profit with income above the exemption limit. If you never opted for 44AD, no audit even with a loss.
• Maintain books (contract notes, broker statements), and file ITR-3 by the due date to carry forward losses.
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