Is high trading tunrover a problem


This year I am going to hit approax. 10 cr turnover with loss of 2lakh. Turnover increased significantly this year compared to last one. because of the use of leverage. This is in Equity segment.

Is high turnover prone to income tax notices? Do income taxdepartment send notices for high turnover?

I am quite regular in filing taxes afterstarting regulat trading activity.

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@san78 Can you.

No, high turnover is not prone to income tax notices.
If your turnover is crossing the threshold limit applicable for tax audit. Pls get the audit done.

Hey @simone

Having high turnover does not necessarily mean, you’ll get a notice from the Income Tax Department. If your turnover is above the threshold, a tax audit may be applicable and you’ll be required to get your books of accounts audited from a practising charted accountant.

In case you get a notice, there is no need to panic if you have reported all your incomes and financial activities in the ITR. Notices/intimations are sent in the normal course of processing tax returns. It might be for routine inquiry or a request for clarification. So you can file repose accordingly, there is no need to worry! :slight_smile:

@San78, @Quicko, Thanks

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How much is the threshold?

Before all that how r u calculating turnover?
Turnover is not trade vale

It is absolute sum of all debit and credit figures related to trading