MY F&O income Is Below The Tax Slab

F&O
1

Hello My F&O INCOME (TOTAL INCOME NOT SALARIED) is below 2.5 lakh and turnover is 15 lakhs. Do I have to pay taxes or File Audit ? Please Can anyone Confirm this :- Turnover = Profit + Losses + sales value ?

2

@Quicko can you.

3

No I did I forgot to mention I am Speaking for Nexxt Financial Year 2020-2021 then will it be Mandatory to file tax And audit If my income Will be Below 2.5 lakh and Turnover of 15 Lakh , please Clarify this.

4

Hi @RishikeshM,

Tax Audit is applicable when:

  1. Profit is less than 6% of the turnover.
  2. Turnover is above the threshold.

Tax audit is not applicable if your total income is below the basic exemption limit and turnover is less than INR 1 cr.
You can use this tool to determine is tax audit is applicable to you

For Income Tax purposes, turnover is the absolute profit i.e. the sum of the absolute value of profit and loss of each trade during the financial year.

Learn more about trading turnover calculation from trading income.

6

Does the profit 6% of the turnover inclusive of expenses or exclusive of expenses? (Expenses like depreciation, consultancy expenses, internet charges etc.,)

7

Hi @Dkarthic,

The profit for the above condition is considered after deducting the business expenses.