i am aware the short term derivatives trading profits are considered as “SHORT TERM CAPITAL GAINS”
and related income tax has to be paid similar to a salaried professional .
but should our annual turnover , be taken into consideration ( w.r.t fees charged by CA ) ?
when turnover crosses above 1 crore does a retail trader have to undergo an audit similar to a business firm ?
If you are trading in Futures and Options it will be considered as business. Only in case you have very few trades in the year that you can justify that you are an investor not a trader you can show as short term capital gains.
Tax audit is necessary if your total turnover is above 1 crore or if your turnover is below 1 crore and profits are lesser than 8% of your turnover.
Check this post: http://zerodha.com/varsity/chapter/taxation-for-traders/