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

curiousv (Mr.) (30 Points)

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?


 5 Replies

Abhishek (Chartered Accountant) (125 Points)
Replied 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

curiousv (Mr.) (30 Points)
Replied 10 October 2021

So I have to show 60 lac x 6% = 3.6 lac profit? so even though I have only 1.5 lac in profit ..I have to show more profit?

if I don't know 3.6 lac profit I require audit?

Sourav (Student) (23849 Points)
Replied 10 October 2021

If profit is less than 6% of turnover then audit is applicable

curiousv (Mr.) (30 Points)
Replied 10 October 2021

Yes but total turnover is less than 1 crore

CA Raj Doshi (Practising CA) (5487 Points)
Replied 10 October 2021

If your gross income is below 2.5 lakhs, then audit is not required. Furnish full p/l and file ITR without audit.

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