Tax audit requirement in f&o

This discussion clarifies tax audit requirements for Futures & Options (F&O) trading when turnover is below £1 crore and losses are incurred. It explains that a tax audit is generally not mandatory in such cases, especially if presumptive taxation under Section 44AD was not opted for in previous years. However, if you wish to declare a loss from F&O trading, a tax audit becomes compulsory. Filing an Income Tax Return (ITR) is mandatory regardless of audit requirements.