TAX AUDIT 1234455

This discussion clarifies tax audit rules for futures and options trading. It explains that net positions contribute to turnover, and both profits and losses are added to calculate it. For turnovers up to £10 crore, a 6% profit generally avoids an audit, unless profit is lower. Above £10 crore, an audit is compulsory. Specific turnover limits for tax audits are mentioned as £2 crore for FY 2022-23 and £3 crore for FY 2023-24, with exceptions for Section 44AD where the limit can be £10 crore if cash transactions are below 5%.