My F And O Turnover is say 2684000 lakh and Actual profit is 137000 and salary 1440000 What will my tax liability be based on?
6% of 2684000 (Turnover) as per Section 44AD?
Or
Tax Audit?
Or
Normal Slab Rate?
Hey @backia,
Your F&O profits will be treated as business income and it is taxed as per your slab rate irrespective of whether you report it as normal business or presumptive business.
In the case of F&O trading, a tax audit is mandatory only when your turnover exceeds ₹10Cr.
Moreover, your tax liability does not depend on your trading turnover. It depends on the profits. If you report F&O trading as normal business, you need to report the actual profits and if you opt for the presumptive taxation scheme, you’ll have to report 6% of the turnover or actual profits whichever is higher.
To calculate your tax liability you can add all your incomes including the salary and F&O profits, and calculate tax on the applicable slab rate. You can use this calculator to estimate your tax liability: Income Tax Calculator
Hope this helps!
My actual option profit ratio for me less than 6% profit 90011 turnover 2739000. (90011/2739000 *100) Profit 3.5 % . Can I do normal filling or tax audit ?
Hi @backia,
The tax audit applicability depends your turnover. As it is less than ₹10Cr, a tax audit is not mandatory.
However, if you had opted for the presumptive taxation scheme in any 5 previous years and are opting out this year, you’ll need to get a tax audit done.
Hope this helps!
If you are opting out of presumptive taxation - what is the penalty you have to pay (apart from audit fees to CA?)