2020 Taxation 44AD clarification

I am an individual full time trader and the only income i get is by trading. I would like to know how the taxation happens in below scenarios -

1, If Profit is < 1Cr and turnoever may be 20Cr
2. If Profit is > 1Cr and turnover around 30Cr
3. If Profit is between 2-5 crore and turnover around 50Cr
4. If profit is > 5Cr and turnover >50Cr

Also please let me know in which scenario i need to make audit and bookkeeping?

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@Quicko

  • Tax Audit is mandatory in all the situation since the turnover exceeds INR 2 Cr. You need to appoint a CA for auditing your books of accounts.
  • Due Date to file Income Tax Return for FY 2019-20 has been extended to 30th November 2020.
  • Trading Income is considered to be a Business Income. The profit is thus taxed at slab rates.

If you need help for filing Income Tax Return, you can refer to this plan - ITR for F&O Traders

For any further queries, write to us on [email protected]

Do you need an Intern? :wink:

Hey @smakkar,

We are always looking for go-getters. :wink:
You can reach out to us on [email protected]

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Thanks for the offer @Quicko but I actually asked that question to @Srinivas_Ramakrishna as seems he’s making a lot of money in trading and I thought I could learn few tips from him :wink:

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