Query about tax and audit

My relative has a business income of about Rs. 20 Lakhs through his personal consultancy.
Below is his zerodha Tax P&L:

I tried to go through the zerodha taxation module but struggled to interpret it.
Can someone please help me with below queries so that we are well prepared when we meet our CA? :

  1. What is the tax implication ?
  2. Does he have to go for an additional tax audit ?

Many thanks in advance.
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Dear,

Intraday Loss of Rs.1500 will be carried forward to next Assessment Year and will be set-off only against Intraday Profit. (Section 73 of Income Tax Act, 1961- Losses in Speculation Business. This loss cannot be set-off against profit of consultancy business.

Also, Short Term Profit, will be carried forward to next AY and will be set-off only against Capital Gain.

He will not have to go for additional tax audit because turnover is within the applicable limit.

Feel free to ask more!

@Atharva_Jambhekar In one of the Zerodha blogs, it was written that if turnover is less than Rs 1 Crore, and profit is less than 6% then audit is required. Since, in this case turnover is less than 1 cr and it’s completely loss (profit < 6%), audit is required.

Isn’t it ?

You need to get books Audited if profit is less tha 6% of turnover and income other than this loss exceeds rs 2.5 lacs.