Salaried individual F&O taxaudit

F&O
1

Hi,

I am a salaried individual having income from salary of 15 lac + bank int of 1 lac + short term cap gain of 30k.

In fy18, i have incurred loss of 3 lac in f&o on turnover of <1 cr. From the material I have read on this forum tax audit is mandatory since income is less than 8%, infact, there is loss. <<Is my interpretation correct on this part?

However, tax audit is costing me more than the benefit I am getting and i dont plan to trade in f&o in future so carry forward of losses does not matter.

So the questions i have are-

  1. Is there a way to avoid tax audit in this case?
  2. Can i use presumptive tax scheme and report profit of 6% and be done with it. And next time go on filing ITR 1.
  3. If tax audit is to be done and p&l and balance sheet is made. What all items do i need to report there, i do not maintain proper books. Does one have to report all personal assets (value is not known in some cases) or just items related to f&o trade?

Thanks,

1 Like
2

a) Your interpretation of the first part is correct.
b) How much is an audit costing you? I did everything for 10k last year with a co. from Ahmedabad called quicko
And Carrying forward losses will matter as you can set it off against income sources other than salary, which includes Bank Interest, Rent, for this year itself and subsequent years as well.

Answers to your questions -

  1. Don’t think so. You shouldn’t as per the rules even if there is a way.
  2. Presumptive scheme isn’t possible for F&O from what I know. Confirm this before doing anything.
  3. 90% sure it’s the stuff that relates to your trading activity, personal assets aren’t to be reported except if you want to claim expenses like demat a/c fees, brokerage, Rent, bills, depreciation, etc along with the losses in which case those things are to be reported.