Sir I did some google today. Here are my finding for Audit requirement and carryforward of lossesfor F&O:
Audit required if filing ITR3:
turnover > 2cr
turnover <1cr but profit <6% of turnover and taxable income > 2.5 lakh and opted presumptive taxation scheme in last 5 years".
No need for audit but need to maintain books if (need confirmation on this):
if turnover <1cr and profit >6% of turnover
turnover <1cr and profit <6% and presumptive taxation scheme not opted of in last 5 years. also carry forward the losses.
Can you confirm this?
Also, If very few trades are taken e.g in my case turnover <2lakhs and losses ~10k then you can completely ignore those trades and losses in those trades and file ITR2(not carry forwarding the losses and not offsetting them against any other income) is that acceptable?
PS: My other income includes salary income, LTCG, STCG, FD interest which are very much greater than 2.5 lakh limit.
PPS: This is my first year as F&O trader and I have filed ITR2(for salary income, LTCG, STCG, FD interest) in last 5 years so never opted for presumptive tax scheme.
Turnover is less than Rs 5 Crore and your taxable income is greater than 2.5 Lacs and you are opting out of presumptive scheme in current year.(meaning you were in presumptive scheme until last year)
Books are required to be maintained if
Audit is applicable i.e turnover is greater than threshold limit of Rs 5 Crore [Section 44AB]
If your turnover exceeds Rs 25 Lacs or FNO income (net) exceeds Rs 2.5 Lacs [Section 44AA]
Since you have LTCG, STGC and FD Interest; you can use FNO Loss to set off against these incomes and reduce your tax liability.
If you have filed your income tax return before the due date; you can file revise return including FNO Loss.