Kindly Help Regarding Audit& Taxation

[Gurpreet]

Hello Everyone,

Kindly help if i need Audit and have to file ITR.

Screenshot is attached with this post.
As i don’t have any income from job or business any kind only Bank Savings.

1. Do I need an Audit as my profits are also not 6% all are losses ? If Yes what i have to do and when Quartly or After and Year.

2. Do I need to file ITR as i don’t have any income and never filed before.

Thanks & Regards

[GB26]

It is said that even if one does not have a taxable income, it helps in the future to file tax. So I think you can file.

@Jason_Castelino

[Gnome]

you are right. all banks first ask for itr when you need a credit line opened so better to file one even one is below the threshold for taxes.

[Jason_Castelino]

@Gurpreet

Audit and have to file ITR.

Audit not required.

IT returns can be filed. But you can’t carry forward loss since the due date to file the same is over.

@GB26

even if one does not have a taxable income, it helps in the future to file tax.

Always recommended

[VijayNair]

@Jason_Castelino

But you can’t carry forward loss since the due date to file the same is over.

Pretty sure he is asking for FY23

[Jason_Castelino]

@VijayNair

Pretty sure he is asking for FY23

Oh. So he is soooo sure to not end up in profits.

[Gurpreet]

First of all thanks for your reply sir.

As i am thinking about not trade till start of next FY so there won’t be any profit or loss.

Few questions again:

1. Do I need to maintain books ?
2. To carry forward loss what are dates to file it.
3. If i continue trading when do I need an Audit.

There might be more questions after ur answers sir so kindly bear with me. As i am new to trading and only thought it’s just Buying and selling stocks or F&O and if we have profit more than Exemption limit we don’t need to file and ITR. I didn’t know about all the other things knew about turnover and all other things few days back from @VijayNair sir and @t7support Sir

[GB26]

@Gurpreet

from @VijayNair sir and @t7support Sir

Add one more sir to the sir list, an important sir, @Jason_Castelino, he is the expert

[Jason_Castelino]

Just go through this. And do not worry too much about your taxation and audit. Generate some good returns first.

f&O taxation rules

It was a very long day yesterday and hence it took some time for me to reply here. Usually I let these topics open because there are many contrary views. Before I give my view let me tell you that this is the most debated topic in all the WhatsApp groups we professionals have. There are multiple views and I shall not post them over here and confuse you guys more. I shall only post my view purely on reading the bare Act. I shall take few relevant parts of few sections and try to explain. SECTI…

[GB26]

Have to bookmark this

[Quicko]

Hi @Gurpreet

It is mandatory to file the ITR when the gross income is more than INR 2.5 Lakhs. Even if you have losses it is always a good practice to file the ITR and this enables taxpayers to carry forward their losses as well. However, for FY 2021-22 the due date to file ITR has already passed so carrying forward of loss shall not be allowed.

Tax audit is not applicable in this case, you can read more at Tax Audit under Section 44AB of Income Tax Act - Learn by Quicko.

Hope this helps!

[Nethaji_Palanisamy]

With respect to your questions,

1. No separate books of accounts are needed. Since all your transactions are maintained by the broker. You can extract from your trading platform say in Zerodha we have a feature called Console.
2. July 31st of every year is the due date and the period is April to march. Say for April 2022 to Mar 2023. Due date is July 2023.
3. Audit is not required as of now.