Tax audit FY 20-21

Posting to get confirmation from informed people:

  • My option turnover for FY 20-21 is 10 Cr+
  • net profit ( after charges ) on that is less than 3 lakh ( < 0.3% )

From googling and cursory reading discovered few things:

  • I need to get audit done because turnover is over 5 Cr
  • Due date for this is 30th November 2021

Is this accurate? @siva @Quicko

@Quicko @siva please reply

Hello, @anontrader

The limit for turnover under Section 44AB has been increased from INR 5 Cr to 10 Cr if the following conditions are satisfied:

  1. Cash Payments do not exceed 5% of the Total Payments in the financial year AND
  2. Cash Receipts do not exceed 5% of the Total Receipts in the financial year

Moreover, the due date for filing the Income tax returns with audit is correct i.e. 30th Nov, 2021

In your case, audit is mandatory u/s. 44ABA(a) as your Options turnover is more than 10 Crores.

Hope this helps!

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Thanks for the confirmation

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@Quicko
@Quicko
I read that “book of accounts” is required if business/profession income is >=1.2 lacs (or may be 2.5lacs) or turnover >= 25 lacs.

Now my use case is:

  • I have salary income of 7 lacs.
  • I have capital gains(short+long) of 3 lacs.
  • I have intraday gains of 50k.

I will be filling ITR3 showing intraday as business income. So this means I need not maintain book of accounts as my business income is just 50k.

Is my understanding correct?

@Quicko Iam a retired senior citizen with only FD interest income (above â‚ą2.5 lakhs)
For FY2020-21 (started stock speculation only from April 2020.all these years self filed ITR-1)
Now I have substantial intraday equity trades+ delivery all Shortterm equity trades.
STCG loss +Intraday gain = net net loss + expenses (part rent+ internet expenses)
also I have lots of currency& commodity future trades (with 2 brokers)
I have to file ITR-3 speculation as a business.
I have not maintained any book of accounts. but have to do tax audit as I have no combined profits .
1)what is the code in it website for retail trade (only financicial speculation?
2) how to calculate STT paid for intraday equity trades? (zerodha deducts lumpsum STT for all intraday MIS +CNC BTSTsell + STCG CNC sell trades

Hi @brokenbull

  1. Code - 09028
  2. In case of Intraday trades, you have to mention total expenses only for Speculative Trades. STT paid on Equity can be claimed against Intraday Gains because STT cannot be claimed against STCG/LTCG.

Hope this helps!