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Tax audit required for intraday and F&O trading income ?

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curiousv

Mr.

77 Points Posted on 09 October 2021

For year FY 2020-21, which ended on march 31 2021.
I had Intraday and FNO turnover was about 60 lac’ with about 1.5 lac in profit which is way less than 6% of turnover.

For equity delivery trades (short term gain) turnover was about 1 crore which I am not willing to add as trading turnover or business income as I would like to treat as capital gains.

DO I need to have audit?
Also, intraday and FNO profit will go under business income and delivery based profit will go under capital gains correct?

Replies (5)

Quick Summary

This discussion clarifies whether a tax audit is necessary for intraday and F&O trading income. Generally, if your profit is less than 6% of your turnover, an audit may be required, unless your total gross income is below £2.5 lakhs. Intraday trades are considered speculative business income, F&O trades are normal business income, and equity delivery trades can be treated as capital gains.

Abhishek

Chartered Accountant

91 Points Posted on 09 October 2021

You do not require audit , intraday is speculative business income and fno is normal business income and u can show delivery trades in Capital gain but in business it will be mandatory to show atleast 6 percent profit