NRI trading in Future and Options, Currency and Commodity


A person with a status of NRI in the FY 21-22 has did trading in FNO, Commodities, Currency and Intra. And he also having LTCG and STCL in equity. His trading turnover is more than Rs. 10 cr. So he is liable for a tax audit. He do not have any NRO and NRE accounts in that year.

Can he able to declare in his ITR all above trading, despite knowing he is a NR for that year? However, everywhere on papers he is a resident.

Can tax audit be done for him in this scenario?


@Quicko can you help.

Hey @sachindei65

Since the trading turnover exceeds INR 10 Crore, the taxpayer is liable to tax audit under Section 44AB of the Income Tax Act. He must report the income in his Income Tax Return and pay tax on the income as per applicable rates. Such income must be reported by NRI too since it is an income accrued and received in India and is thus taxable in India.

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