Turnover-Audit Query/Option Traders(Re-

[traderniftybull]

I traded Option madly previous year FY 2016-17,so TO is 42L
8% of this 42L is 3.36L.
Profit should be above 3.36L to avoid audit.But as you know I'm only loosing,so there isnt any profit at all.

You can not plan now for previous year, so you have only 2 options.
- Go for audit
or
- Show 8% (or 6%) and pay tax accordingly, after adding your other income from other sources and salary income (if you have) etc.

 

[aja]

You can not plan now for previous year, so you have only 2 options.
- Go for audit
or
- Show 8% (or 6%) and pay tax accordingly, after adding your other income from other sources and salary income (if you have) etc.

I told many times that I have been doing the same thing i.e,
Declaring 8% profit(though I'm in a Loss so far).But I think that's the incorrect way after talking with few CA's.Reply varies from firm to firm.
If the income is below 8%,audit is MUST irrespective of our other income.
I dont have any job.I am living on FD interest only.

And,seriously I'm left with 45k amount in hand and I cant afford audit NOW etc so asking all these queries.IF CA is filling a wrong return,then I am only going to suffer.And I cant afford legal process further.Wrong filling,Defective Issues like cases are very painful and easy target for ITD.

 

[aja]

Strange thing is-looks like no one is doing audit in TJ(except those Pro's).
But atleast small traders like us should share their views.(What your CA did with your ITR).

I see lot of profitable gyan but no one is eligible for audit?

 

[princy01]

Strange thing is-looks like no one is doing audit in TJ(except those Pro's).
But atleast small traders like us should share their views.(What your CA did with your ITR).

I see lot of profitable gyan but no one is eligible for audit?

I was audited last year will be audited this year, want to be audited for the rest of my life

 

[wisp]

I traded Option madly previous year FY 2016-17,so TO is 42L
8% of this 42L is 3.36L.
Profit should be above 3.36L to avoid audit.But as you know I'm only loosing,so there isnt any profit at all.

If you have other taxable income, you will need audit on your FNO trading even if in loss and less than 2C turnover, unless you are trading it as a non-proprietorial company.

 

[marimuthu13]

that means audit is also not mandatory(considering TO is below 2Crs marks and its below my actual TO which is 42L)?

Yes, audit is not mandatory, if your TO is less than 2 crores (it was 1 crores till last year) and show 8% profit on your TO (for business done digitally only, it is now 6%, but clarification required) and pay tax accordingly and one more condition has been added this year, that you have to show 8% (or 6%) profit for the next 5 years.

I told many times that I have been doing the same thing i.e,
Declaring 8% profit(though I'm in a Loss so far).But I think that's the incorrect way after talking with few CA's.Reply varies from firm to firm.
If the income is below 8%,audit is MUST irrespective of our other income.
I dont have any job.I am living on FD interest only.

And,seriously I'm left with 45k amount in hand and I cant afford audit NOW etc so asking all these queries.IF CA is filling a wrong return,then I am only going to suffer.And I cant afford legal process further.Wrong filling,Defective Issues like cases are very painful and easy target for ITD.

Strange thing is-looks like no one is doing audit in TJ(except those Pro's).
But atleast small traders like us should share their views.(What your CA did with your ITR).

I see lot of profitable gyan but no one is eligible for audit?

Aja ,

it looks funny for me that you are actually in loss, but showing as 8% profit (now 6 % profit), then paying income tax ..........just to avoid audit cost which would around 10K.

2 things are against nature here:

1. You are paying income TAX for loss ( supposed to be for income only)
2. Manipulating tax filing (showing losses into profit , i am really wondering how CA can do this things for electronic trading. For CA , it is possible that profits can be shown as loss due to other expenses realted to trading...)

Best thing is go with tax system, abide accordingly, no tingeing work in between. Turnover calcualtion is very clear, so if your TO is exceeds, file with audit,

If TO not exceeds, but profit also not excedding 8% (6 % now) , then file with audit.

If TO exceeds 2 cr, profit or loss any case, file with audit audit .

 

[traderniftybull]

Aja ,

it looks funny for me that you are actually in loss, but showing as 8% profit (now 6 % profit), then paying income tax ..........just to avoid audit cost which would around 10K.

2 things are against nature here:

1. You are paying income TAX for loss ( supposed to be for income only)
2. Manipulating tax filing (showing losses into profit , i am really wondering how CA can do this things for electronic trading. For CA , it is possible that profits can be shown as loss due to other expenses realted to trading...)

Best thing is go with tax system, abide accordingly, no tingeing work in between. Turnover calcualtion is very clear, so if your TO is exceeds, file with audit,

If TO not exceeds, but profit also not excedding 8% (6 % now) , then file with audit.

If TO exceeds 2 cr, profit also exceeds 6% then DONT audit .

Bhai
Then,
What is presumptive tax, and what its use.
Can you please explain.

My view is
It is to declare a presumptive income of 8% (or 6%) on your total TO, irrespective of your actual profit, (And when department is of the view (though ridiculous) that loss is a form of negative profit,) then include loss also. And pay tax on it.

 

[princy01]

Aja ,

it looks funny for me that you are actually in loss, but showing as 8% profit (now 6 % profit), then paying income tax ..........just to avoid audit cost which would around 10K.

2 things are against nature here:

1. You are paying income TAX for loss ( supposed to be for income only)
2. Manipulating tax filing (showing losses into profit , i am really wondering how CA can do this things for electronic trading. For CA , it is possible that profits can be shown as loss due to other expenses realted to trading...)

Best thing is go with tax system, abide accordingly, no tingeing work in between. Turnover calcualtion is very clear, so if your TO is exceeds, file with audit,

If TO not exceeds, but profit also not excedding 8% (6 % now) , then file with audit.

If TO exceeds 2 cr, profit also exceeds 6% then DONT audit .

Exactly correct

These people are talking very funny actually

10 k is normal audit rate and they want to save that, and are thinking to pay 2.4 lacs tax, very funny

 

[mmca2006]

........

If TO exceeds 2 cr, profit also exceeds 6% then DONT audit .

If turnover exceed 2 cr. it will be covered u/s 44AB for compulsory Audit , irrespective of profit % , then how is it possible to avoid Audit?

 

[aja]

Exactly correct

These people are talking very funny actually

10 k is normal audit rate and they want to save that, and are thinking to pay 2.4 lacs tax, very funny

Prince,I know you and tnb has some cold war going on since few days.
But this audit debate is going on since last 2 months.One of the threads by some user got deleted where I explained my all details very well,but tnb has different views on it.In that thread ST Da and headstrong had put very shocking points like his CA doesn't consider premium on a sell side for calculating TO.

My city has audit fees=20k

and I bet you didnt get my query :annoyed: and calling it funny :lol: