CA tax audit report required in case of lose in STCG, Intraday and F&O trading in the FY 2020-21

I am a salaried person and I have started trading in the stock market last Financial Year 2020-21. I made losses under LTCG, Intraday trading and F&O all of them. I want to set off these loses and carry forward these loses to next year. I want to file income tax (AY 2021-22) under ITR 3. My turnover for F&O is 15 Lakhs for FY 2020-2021. (As per my understanding any of these wont come under presumptive tax 44 AD)
If I make a P&L Report and Balance Sheet for FY 2020-21,
Do I need to be audited by CA after filing Income tax (Does audit come under 44AB or any other act)? Or just consulting CA to create P&L and Balance Sheets is sufficient?

Note: Till this year I have filed only ITR - 1.

Here I want to File income tax under ITR 3 without 44AD section. Then my turnover is which is 15 lakhs < 1 Cr/5Cr.
Do I need Tax audit report?

Section 44AB says if Business Turnover is < 1cr then no audit required. Also Business turnover is < 5 cr also Audit not required provided cash transactions has to be less than 5%.

In ITR - 3 We should not go under 44 AD section. Then we need a P&L and Balance Sheet to be maintained (Books of accounts to be maintained).

Below is the screenshot from ITR - 3 Excel utility and Sheet name is Profit and Loss.
If we fill 13 to 60 in this case books of account has to be maintained. And F&O turnover is < 5Cr (assuming cash transactions < 5%) we don’t need CA Tax audit report.

Below screenshot is also from ITR - 3 Excel utility and Sheet name is Profit and Loss.
Here if you go with 61-65 which comes under Section 44AD, 44ADA, 44AE and our profit is < 6% or if we incured losses then CA Tax audit is mandatory with all books of accounts provided our turnover is < 2 cr. Else we can’t utilize these sections.

simply if we use 13 to 60 pointers (in the image) in the balance sheet and don’t go for 61 to 65 (which is 44 AD, 44ADA, 44AE) and your turnover critieria setisfies then looks like no need of Tax Audit report.

We have to go for 13 to 60 else 61 to 65 any one of these not both. Any CA’s here correct me if I am wrong.

Please suggest me if I am wrong.

@Quicko can you.


Audit applicability can be determined as follows:

  1. If turnover is less than INR 2 crores, Tax Audit as per Sec 44AB(e) is applicable if there is loss or profit is less than 6% of Trading Turnover and total income exceeds the basic exemption limit unless you have not opted for 44AD in any 5 previous years.
  2. If trading turnover is more than INR 2 Cr and up to INR 5 Cr, a tax audit is not applicable irrespective of profit or loss.
  3. If trading turnover is more than Rs. 5 Cr, tax Audit under Sec 44AB(a) is applicable irrespective of the profit or loss.

Further, If turnover is up to 2 crores you can opt for section 44AD if you wish to declare profits of more than 6% of turnover. No Audit is required here.
Moreover, If you do not opt for 44AD, you need to file ITR-3 along with the Profit and Loss account and Balance Sheet and take the benefit of carrying forward of losses.

My turnover is 28 lakh, profit is 31000,in fno, do i need tax audit