Tax audit

section 44AB tax audit is compulsory if your gross turnover is exceeding rs.1 crore. there is nothing mentioned about any loss or profit.

a person whose salary is rs 5 lakhs, where i can say that all his trading transation is based on Quantities  if he is doing number of transation we can't say he is an investor, then i would be speculation or F&O. however, if i did only few transations say 10-20 transation during the year then we can say he an investor who sold investment from his portfolio.

Dear Ganeshan, you need to cover the provisions of section 44AD where the F&O turnover is less than Rs 1 cr.  In such cases if the profit offered is less than 8%, and total income exceed Rs 2 lakhs, tax audit shall be compulsory.