@anuj Hi Anuj,
My FnO transactions in FY17-18 is as follows
FnO turnover : 34,50,000
Profit/Loss : -32,000
I have no other source of income. So no taxable income.
Since my total income is less than 2.5 lacs i want to file ITR3 without audit. But my doubt is,
1.Without audit, can i show a loss in ITR3 OR do i have to show a profit of 6% and pay tax on it to avoid audit?
Though i am not interested in carrying forward the losses, i want to file proper ITR for documentation and to avoid any scrutiny later.
please file itr 3 and show loss as you calculated.and unless you filed 6% basis in PY then their is no need for audit since you calculated yur turnover which is less than 1 croreâŚhope this will helpâŚ
Hi Anuj, I work in an IT company.I have an income of 2.69 for previous year from salary. And 55k loss from F&O and 3k gains from equity.
Which form shall I use to file and how to carry forward the losses .
Hello sir i have no job do tades regularly with small quantity .but in loss now. Which itr i sud fill up. And if i come into profit,even without job which itr i dud file
Hi Anuj,
You mentioned âunless you filed presumptive tax 6% PYâ . What if someone has filed ITR 1 last year, current year - f&o loss, transaction are less than 1cr. Is audit required in this case? Please help here.
But if I donât do Audit, then also would I be able to show loss? Some CA told me that even if your transactions are less than 1cr but if you are not showing profit of more than 6% (of overall transaction), then audit is compulsory. Please if you can clarify this in detail.
Yes. By default, if your income is less than 8% or youâre facing net losses, an audit is required.
My take -
A lot of people try to avoid getting an audit done because it costs them 10k by assuming 8% profits and paying taxes on them + letting go of losses which they could carry forward up to 8 years. Which is so stupid on paper. Thereâs a good chance your losses + whatever youâll pay in taxes for your turnover is greater than 10k. No to forget if the Income Tax Dept. knows of the fact youâre facing losses, youâll be heavily penalized for reporting incorrect info to the Dept.
Itâs ironic(and funny) that people that get into trading end up loosing so much money want to save 10k and lie to the ITD about there losses. If you got into trading, itâs treated as a Business and you cannot avoid tax compliance as a Business.
If total income including trading and interest (for senior citizen) is less than 2.5 lac - no need to audit correct? I am confirming if anything is changed since Nov. 17. @Quicko@TAXIQ.IN
Tax Audit is not applicable when the total income is less than the basic exemption limit and the trading turnover is less than INR 1 Cr.
You can read more about Tax Audit on trading income on our Learn Center
I donât think thatâs right. You can declare losses without audit if your turnover is less than 1 Crore and you never declared your profits under presumptive taxation in previous years even though your salary/other income is above 2.5 lakhs. There seems to be this mis conception going around. What do you guys say? @Quicko@taxiq.in
The audit is required compulsory if turnover crosses 5 Cr ( 1 Cr Before ) for FY 2020-21 irrespective of profit or losses. If turnover is less than 5 cr & have a profit of less than 6% (Sec 44AD) you should get your books audited and file the ITR. If your Total income other than losses under Business is less than 2.5 Lacs you can file without an audit as well. Contact your accountant before taking final decission
When Section 44AB and Section 44AD are read together, tax audit is applicable in the following situation - when the trading turnover is up to INR 1 Cr, there are losses or profits are less than 6% of turnover, total income is more than basic exemption limit and the taxpayer has opted out of presumptive taxation scheme by not following the five year rule as per Section 44AD(4).Tax Audit is recommended for such taxpayers for the following reasons:
It is difficult to check whether the taxpayer had opted out of presumptive taxation scheme in any of the previous five assessment years.
There are taxpayers who have received a tax notice for claiming losses without going for Tax Audit.
Based on our practical experience, the taxpayer should claim and carry forward trading loss by opting for tax audit so as to avoid chances of receiving a notice from the tax department. Further, we always advise with a clearer answer once we look at the income situation and trading statements.
We would be glad to explain and resolve your questions if you can share your contact details on [email protected]