Turnover-Audit Query/Option Traders(Re-

There are many profitable traders in this forum who trades Option and having a decent profit exceeding their turnover 1Cr(now 2 Crs limit) like traderniftybull,princy01,headstrong007 and many more.

As you are filling return from last few years,please tell me,are you doing an audit?

I visited few new CA’s in my city one more time.Some of them considering only 2Crs mark.
If the turnover exceeds it,then audit is must irrespective of profit,loss or 2.5Lakhs initial rebate.
And If the profit is below 8% of this 2Crs mark,then also audit is must.

My turnover is 42 Lakhs and some CA says that I don’t need an audit as its below 2Crs mark.

I’m really confused.So requesting you to tell me what your CA is actually advised you.
What actually you putting/filling in your IT Return?

So,In short-
How much is your turnover?
Are you doing an audit?

Bhai, though I trade options but I am no big trader

But will post more in the evening after 7

In the meantime, do post that how you calculated TO

Profit+Loss+Premium on Sell Side is TO

Income tax act under sec 44 or so , changed from last FY, that audit is required if you show less than 8% of profit with respect to your turnover. (applicable only if turnover is less than 2 CR)

in case of turnover is grater than 2 CR, you have to go for audit even if you show profit of greater than 8%

If shown less than 8% profit and an entity (individual or business) has taxable income through other means, audit is required

If trading is done as a separate business (not proprietorship), then if less than 8% profit no need of audit.

Kidhar Gaye Profitable Traders or a Trader who file a return?

Bhai,
You are unncessary confusing yourself in this matter.
It is very much clear from various posts in different taxation threads of TJ and various clarification/explanations given by CANikhil ji and others.

Audit is compulsorily required, if:
1. Your TO is more than 2 crores (previously this was 1 crores) irrespective of profit or loss.
2. If TO is less than 2 crores (previously this was 1 crores) and profit is less than 8% (BTW, loss is considered as profit less than 8% by these fools, ridiculous, then why coining the term loss)

Now, when audit is not necessary
When condition 2 above is met, but your total income (including loss) from all sources (after adjustment of income, profit and loss of different categories allowed) (but no IT deductions for example of 80C etc) is less than exemption limit (that is 2.5 lakhs for an individual aged less than 60 years)

And how I do it/manage it