Tax Audit Applicability for F&O Loss

Tax queries 151 views 3 replies

My client is a salaried person having income of Rs.31,00,000 apporx

He has done F&O trading for the first time and has a turnover of Rs.65,00,000 with a loss of Rs.9,00,000 and wants to carry forward it.

Additional Disclosure:
1. He has always filed ITR-1/ITR-2
2. Never opted for presumptive taxes before (Also he does not intend to opt for it)
3. Never maintained books of accounts before

Now there is a lot of confusion on forums because I have seen different opinions.

MY QUESTION IS:
1. Is Tax Audit Applicable for him ? 
2. Is books of accounts mandatory ?

Replies (3)

Tsx audit not applicable as turniver less than 10crores. I assume all transactions through bank.

 

However maintenace of books applicable . That should be simple enough.

Yes all transactions are online since its F&O in my case.

Thank you for confirming

Hello sir, my FNO loss is about 9 lakhs and turnover providd by broker in PnL statement is around 35 lakhs. I have no salary income. Will tax audit be applicable? I am asking because when I was submitting my ITR3 Yesterday at time of final submission it said yiu are liable to audit since turnover exceeds 75 lakhs. But I conrinyed and submitted the form thinking tgat my turnover is below 1 crore. Will there be any notice in this case. I opted for maintain of books but NO in  do case of Audit. Is it ok. 


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