Turnover-Audit Query/Option Traders(Re-

[traderniftybull]

bullwa,mere dost
how much was your Turnover last year?

Did you fit into audit case?
Or how you avoided audit?Like Headstrong007 avoided.

No, I do not avoid audit, the way other (mentioned by you ) member tries to do. I am a small trader and I have my ways, (totally legal ways) to avoid audit and I have to plan well in advance to do it.

I will again repeat what I said previously,
that when we can legally avoid compulsory audit (mainly for small traders), in case of profit being less than 8% of total TO (including options trading and including sale value of option) then why go for illegal means.

 

[aja]

No, I do not avoid audit, the way other (mentioned by you ) member tries to do. I am a small trader and I have my ways, (totally legal ways) to avoid audit and I have to plan well in advance to do it.

I will again repeat what I said previously,
that when we can legally avoid compulsory audit (mainly for small traders), in case of profit being less than 8% of total TO (including options trading and including sale value of option) then why go for illegal means.

I dont understand how to avoid audit legal ways?
Pls tell me.I'm always fall in less than 8% of total TO

 

[traderniftybull]

I dont understand how to avoid audit legal ways?
Pls tell me.I'm always fall in less than 8% of total TO

Okay
To start with
You trade in futures and/or options and/or cash equity.
What was your TO in previous year FY 2016-17
(Plz note that I can not suggest for FY 2016-17, but this TO is required to plan for FY 2017-18)
What was the profit or loss percent in fno and in cash intraday segment (if traded)

 

[mmca2006]

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.

Kindly elaborate what kind of complication may arise!

 

[aja]

Okay
To start with
You trade in futures and/or options and/or cash equity.
What was your TO in previous year FY 2016-17
(Plz note that I can not suggest for FY 2016-17, but this TO is required to plan for FY 2017-18)
What was the profit or loss percent in fno and in cash intraday segment (if traded)

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.

 

[marimuthu13]

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.

Kindly elaborate what kind of complication may arise!

no complication,,, simply you cannot carry forward your losses to next year..

 

[soft_trader]

As per the new amendments it is 6% of turnover to avoid audit if the receipts are in non-cash means. In trading all transactions happen electronically so it is 6% now.

 

[mmca2006]

no complication,,, simply you cannot carry forward your losses to next year..

yes correct ....there is no question of complication.....it is always better to show 8 % profit because no audit required and no books to be maintained.:clapping:

 

[aja]

no complication,,, simply you cannot carry forward your losses to next year..

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

 

[traderniftybull]

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.