Hi,
Taxable income from salary 5.6L
STCG from equity markets - 24500 INR
Loss made from F&O - 1,49,000 INR Considering to declare as Business income non-speculative
Turnover - 12,56,878 INR
Currently, I can see that the Short term capital gains can be offset against F&O Losses, with net loss of ~1.24L which is less than 6% of turnover. I need to carry forward the losses.
What should be done?
if a tax audit is recommended, what if I don’t do it?
@Quicko Can you take this up?
Hello @bb_box
Tax Audit is applicable is applicable in your case. Further, if you need to carry forward the losses then you have to mandatorily file tax audit report.
If tax audit is recommended and fails to get audited of his account before the due date, then they will be liable for a penalty of 0.5% of the turnover or the gross receipts up to a maximum penalty of Rs. 1,50,000.
You can read below article for more insights about tax audit applicability:
Hope, it helps!
@Quicko Where should I write to? To get my audit done?
@Quicko How should I pay the auditing fees? How much is it?
Hello @bb_box,
You can reach out to us at [email protected]. We shall take your request from the mail!
Hope it helps!
My Pvt. Ltd co. has done a option purchase value of around 62 lakhs and an option salve value of 120 lakhs and a turnover of around 1.50 Cr
bank payments during the year are 37 lakhs including cash exp of around 5.5 lakhs.
My auditor insists on tax audit since 5% of 37-5.5= 31.5 lakhs ie 1.57 lakhs . Since my cash exp are much higher than 1.57 lakhs, tax audit is necessary.
My healthy argument is that purchase value of option premium ie 62 lakhs should also be included with 31.5 lakhs to identify the less than 5% cash rule.
kindly share your thoughts on this.
Even if you do, 5% of (62+37) is still only 4.9L and 4.9L<5.5L
I am aware of that, my main query was, can this purchase value be considered.
So, Bringing down to 4.9L will avoid tax audit!
Why do you wanna avoid it? You anyways have to get company audit done.
How? 4.9L is the 5% limit. Your cash expenses is 5.5L. It’s more than 5%
5% of 62+37 is 4.95. so 4.90 cash transactions is less than 5%
wanna avoid tax audit! company audit will be done however.
CAs usually do bundle price I heard.
But what’s the reason? You are trying to bring your expenses down by 50k to 60k to avoid tax audit. So indirectly you are paying tax on this amount at 25 percent. So you are losing 15k indirectly here. If you go for tax audit how much extra will be CA charge? I feel he will charge the same irrespective of whether you go for tax audit or not since company audit is not avoidable.