Regarding banknifty option trading income

F&O
1

Hi am doing bank nifty option trading (buyer) every day in intraday segment so am in learning stage and am doing with very small amount below 10k on evey am may take profit /loss . Here i want to understand few points like just assume that if i earn gross profit 10 lk with in 4 months(31st dec 2020 to 1st april 2021) and turnover is 1cr .

  1. Is it comes under CA audit and what happen if CA audit.?

2.am doing option buying in bank nifty every day (as per market) at a premium price and square off the positions when the premium price hits profits/loss is this procedure comes under any complaince.

2

@Quicko can you.

3

Just assume senarios . Before proceed i want a clarity on this, then i started my strategy to earn profits.please help me if you know solution to my query.

4

Can any one help me in this query.:sweat::sweat:

5

Have tagged @Quicko, they will address your query.

There has been discussion on various topics related to taxation for trading on this thread, you can go through it as well: Ask Me Anything about Taxation on Trading & Investing #TaxSeason2020

You can also go through this topic for more: Taxation.

1 Like
6

Thanks for informatiom

7

Hi @praven_kumar,

If the turnover is 1 Cr and profit is 10 lacs, tax audit is not applicable since profit is more than 6% of turnover.

No. This is just a strategy for trading. Tax Compliance comes into picture when you make profit/loss from such trading activity.

8

Hi @Quicko

Thank you for information.

Here i want to understand the consequences if CA aduits. Like why CA audits is required if loss/profit is less than 6% than turnover is 1cr. Please explain this point.

9

You can refer to your answer here. :slight_smile: