Are You Covered Under Tax Audit

[vijkris]

very nicely explained.
lets see another case,

A) Other business income 1.80 lakh
B) FNO turnover 10 lakh
C) FNO income 90,000 (> 8% of turnover)

total income 2.60 lakh but as FNO profit greater then 8% , so audit not necessary ?
as income is marginally above 2.50 lakh so after 10,000 deposit in PPF , there may be no taxable income , correct ?

sirji, there is some mistake, u forgot to add zero at the end. The real query is:

A) Other business income 18.0 lakh
B) FNO turnover 100 lakh
C) FNO income 9,00,000 (> 8% of turnover)

total income 26.0 lakh............. :thumb:

 

[travi]

Zerodha Campaign is struggling to get 1500 ppl to push this petition

https://www.change.org/p/minister-o...-securities-and-derivatives-from-section-44ad

Ravi Bhai, plz support

 

[chavanms]

Good morning Ravi Bhai
i am doing intraday trading one lot daily.
is calculation of turnover is correct ?

8000 x 75 buy
8000x 75 sell
12L daily TO x approx 20 session / month

Annual 240 L TO


Expected profit is 160 pt./ Month

annaul pt 1620 and income 144000

does it require tax audit

Regards

Mukesh


Sent from my HUAWEI RIO-L01 using Tapatalk

 

[TraderRavi]

Good morning Ravi Bhai
i am doing intraday trading one lot daily.
is calculation of turnover is correct ?

8000 x 75 buy
8000x 75 sell
12L daily TO x approx 20 session / month

Annual 240 L TO


Expected profit is 160 pt./ Month

annaul pt 1620 and income 144000

does it require tax audit

Regards

Mukesh


Sent from my HUAWEI RIO-L01 using Tapatalk

Turnover is sum of absolute profit + loss.
so in first trade let profit is 2000 and in second trade loss is 1000 , now total turnover after 2 trades is 2000 + 1000 = 3000.

 

[travi]

TO Calculation for F&O will only be the favourable or unfavourable p&l.
Therefore,
1. TO for F is 160pt * 75 = 12000 (This is your net gain, but you have to add all profit and all loss)
2. For Options, the TO will be the net gain/loss + premium received on selling.
Therefore, the entire sell value will add to TO.

If Total income is less than Inr. 2.5L, Audit is not required.

 

[Satya.]

TO Calculation for F&O will only be the favourable or unfavourable p&l.
Therefore,
1. TO for F is 160pt * 75 = 12000 (This is your net gain, but you have to add all profit and all loss)
2. For Options, the TO will be the net gain/loss + premium received on selling.
Therefore, the entire sell value will add to TO.

If Total income is less than Inr. 2.5L, Audit is not required.

hi,if total income is 4L,bt after the deduction tax is Nil,Audit is required?

 

[travi]

hi,if total income is 4L,bt after the deduction tax is Nil,Audit is required?

Audit is required, that income cannot be offset against deductions to skip audit.

The same way STCG Loss cannot be offset against income from salary but can be offset against interest, rental (basically what is considered as business) income etc.

 

[canikhil]

hi,if total income is 4L,bt after the deduction tax is Nil,Audit is required?

as per law, the total Income before deductions is to be considered...

 

[Satya.]

as per law, the total Income before deductions is to be considered...

ohh tht means even if the income is jst 2.75L frm trading f&o,audit is required?

If Total income is less than Inr. 2.5L, Audit is not required.

my f&o turnover is 22L
8% of it is 1.76L

I made a profit 2.75L(including 15k bank interst)

Audit is required or not?

as per 44ad,profit is greater than 8% turnover so no audit?Is my understanding correct?

 

[canikhil]

ohh tht means even if the income is jst 2.75L frm trading f&o,audit is required?



my f&o turnover is 22L
8% of it is 1.76L

I made a profit 2.75L(including 15k bank interst)

Audit is required or not?

as per 44ad,profit is greater than 8% turnover so no audit?Is my understanding correct?

no. as long as profit is equal or more than 8%, no audit is required for turnover upto Rs 2 cr.