Whether Audit under Income Tax Act Required ??

My Client does Trading in Future & Options and the Turnover as per Income Tax Act is below 5 Crore and has Loss of around 1.25 Lacs & also after considering other Income the Total Income does not cross the Maximum amount chargeable to Tax.

 

 

So whether Audit is required under Sec 44AB or I can file ITR 3 with normal books of accounts Case

Replies (5)
Quick Summary
This discussion clarifies whether an income tax audit is required for a client trading in Futures & Options. Despite turnover exceeding certain thresholds, if the net taxable income (including other income) does not surpass the basic exemption limit, a tax audit under Section 44AB is generally not applicable. The client can likely file their return using ITR-3 with normal books of accounts.

I think tax audit is required and file ITR 3
For F&O transactions turnover is calculated by Adding profit and loss, if profit is 100 and loss is 200 then, turnover is 300.
In the present case since your net income liable to Income tax doesn't not exceed the basic exemption limit, hence audit not applicable.

Audit is not applicable as the as the aseessee has GTI less than the basic exemption limit..you can file ITR -3.

Tax audit not applicable
file itr 3

Thanx everyone for the quick response Even i had the same opinion but wanted to be sure before  telling the client

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