Is tax audit needed?


#1

Professional income: Rs 240000 ( Net Profit)
Intraday Loss: Rs 224290, Intraday turnover Rs 577250
short-term capital gain Rs 54000 (will be taxed @15%)

Now my question is whether I need to get an audit done as Turnover is less than 2 cr and profit is less than 8% of turnover?
I think though my total income is below 250000 I am paying 15% short-term capital loss so whether audit required help?


#2

Please clarify about your professional income, Whether it is from Salary or Business income.

If I assume it to be from Salary, then:
I suggest you show your STCG as Non-speculative business gain. In that case It would be taxable as per your tax slab, ie, @10%.

Also, If your intraday loss is in F&O, then it can be set-off against above STCG shown as Non-speculative business gain, and your tax outgo would be zero then.

If your intraday loss is in equities trade, then it cannot be set-off in present case. You can carry forward it to next 4 years and can set-off against any equities intraday gains(speculative business income).

As net business profit is less than 6% in your case, you need to have tax audit done. However, you can pay a presumptive tax on 6% of the turnover declaring it as presumptive income to avoid tax audit. You would need to use ITR 4S. Please note that of you declare STCG as business gain then it has to be added in total business turnover. Net business profit would be presumptive income plus ₹54000 minus ₹224290.

@nithin Kindly check whether I am correct here.


#3

Yep all correct except that tax slab for income between 2.5lks to 5lks is 5%. So what it means is that STCG on that portion of income above 2.5lks ( 224290 + 54000 - 250000) will be at 5%.