i have read taxation simplified but there is no mention about need for audit when delivery value is higher than 1 cr. want to know if even in delivery trades only net receivables that is profit and loss has to exceed 1 cr also not many CA s are aware of those rules.will be nice if someone can explain,
Firstly for delivery based equity trades, sell side value of the stock is ideally considered as turnover. So fi you bought for 1lk and sold for 1.1lks, 1.1lks is the turnover.
The question of accounts audited depends on how you consider yourself, investor or trader.
If you are an investor, you pay Short term capital gains of 15%, and there is no question of audit or turnover.
If you trade very actively, you consider yourself as trading as a business, in this case you pay taxes as per the income tax slab you fall in (after adding all your income). Yes, in this case, you will need to get yourself audited if your turnover is more than 1 crore.
The question of what is active and what is not, hmm… 
there is no guideline as such.
Have answered a bunch of queries here: http://zerodha.com/z-connect/traders-zone/taxation-for-traders/taxation-simplified
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thanks for your time Nithin,as per this most of the BTST traders in cash market will have to get audit done. hopefully things will get simple in future. just came across your petition today ( TAX IQ shared on their mailing list) . also signed it., keep up the good work. really wish few more brokers are concerned about their clients priorities as you guys are.