Turnover-Audit Query/Option Traders(Re-

aja

Well-Known Member
#11
Ok,so as my TO is 42L,
my profit must me more than 8% i.e, 336000 Rs. to avoid an audit.

If its below 336000 Rs,then I need an audit.Right?
 

aja

Well-Known Member
#12
I dont understand how you manage it bull bhai.

Assuming your TO is less than 2Crs
Assuming your TO is 70Lakhs
Assuming you have 1 Lakh FD interest

now,pls tell me on above mock example,how do you avoiding audit?
 
#13
Bhai
If you are in no hurry, then can we discuss this topic in detail on this weekend.
 
#15
BTW
We cannot do anything for last year, (though will try to manage whatever we can)
but can plan/manage for this year, in advance
 

headstrong007

----- Full-Time ----- Day-Trader
#16
@aja
I trade futures (crude & bnf) much more, then weekly options...
My profit above 8% of turnover. No audit.
My CA cleverly reduced the turnover and escaped 2Cr limit.:lol:
I don't have much time to check all laborious turnover calculation...Initially, I thought he don't calculate Premium on Sell Side for options...
But later I found he calculated Scrip wise turnover(Avg buy/sell of all trades on the particular contract, say nifty may17) not Trade wise.. which is very much legal...
For last 3 years he is doing so..:)

You can make script/contract wise calculation to reduce turnover down.
But assuming, you are in loss or less than 8% of profit, if your total gross income is above the taxable limit of Rs 2.5lks ... An audit is required...

If u r in loss or less than 8% profit, pls don't try to show profit 8%+ to escape audit, it can complicate the situation.


Always file in advance, so that u can get scrutiny notice turnover calculation is wrong and have enough time for resubmitting...
But never show wrong profit loss..Don't make situation complicated...
IT only want the business turnover and if any tax due..
also 8% is a complicated issue.. I think, some new rule.. u need to follow same way for next .. years...not good for future filling... IMO..

Thats all what I know.. We just need to find a very good CA who can handle confidently any scrutiny notice(if come).
 

aja

Well-Known Member
#17
If u r in loss or less than 8% profit, pls don't try to show profit 8%+ to escape audit, it can complicate the situation.
Unfortunately my CA always shown 8% profit and I think all my IT returns filed so far are wrong.
If I get a Scrutiny notice in future and If the AO/ITO is Dendu..
Samzo meri lambi lag gayi :annoyed::mad:
 

aja

Well-Known Member
#18
Many traders trading options.May be 80% of them trading it.Whenever I visit my local broker I could see only CE-PE loaded on their terminals.

But strange very rare people are doing audit.

I got the back query on my query like-
Profit hi nahi hai to kaisa audit?
Income hi generate nahi hua to tax file kyun karna?
 
#19
Many traders trading options.May be 80% of them trading it.Whenever I visit my local broker I could see only CE-PE loaded on their terminals.

But strange very rare people are doing audit.

I got the back query on my query like-
Profit hi nahi hai to kaisa audit?
Income hi generate nahi hua to tax file kyun karna?
I dont know what they are doing to avoid filing ITR and/or audit, if required.
But you are confusing yourself again, unnecessarily.