I am a Govt employee and earning salary. Yearly around RS 3.00 lake TDS is dedicated from me. I do credit spread trading. I got a statement from my broker stating that I earned a profit RS 283000/- and Turnover is RS.5661000/-. Please see attachment. Am I required to undergo Tax Audit? Please help me by replying.
Firstly, crosscheck on how your broker is declaring turnover. If it is premium turnover, then that is not what goes into calculation turnover when trading options. I have explained this in the chapter of turnover here
If your profits is less than 6% of your turnover, you will need an audit (since u r in the over 2.5lk income range). You can recalculate the turnover in an aggressive way and declare that while filing ITR.
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