# Taxation on speculation trading

**URL:** https://tradingqna.com/t/taxation-on-speculation-trading/98917
**Category:** Taxation
**Created:** [December 31, 2020, 4:07pm UTC](https://tradingqna.com/t/taxation-on-speculation-trading/98917 "2020-12-31T16:07:03Z")
**Posts on this page:** 4
**Page:** 1

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### Author: ![Vast\_Gupta](https://tradingqna.com/user_avatar/tradingqna.com/vast_gupta/32/38524_2.png) [@Vast\_Gupta](https://tradingqna.com/u/Vast_Gupta)
#### Post date: [December 31, 2020, 4:07pm UTC](https://tradingqna.com/t/taxation-on-speculation-trading/98917/1 "2020-12-31T16:07:03Z")

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For FY 2019-20  
I have earn salary of Rs. 8Lac p.a. and i have incurred losses equity intraday (speculation ) of Rs. 66k and brokerage of rs. 22k and my turnover is 70k …whether tax audit is applicable or not me ??

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### Author: ![ShubhS9](https://tradingqna.com/user_avatar/tradingqna.com/shubhs9/32/32667_2.png) [@ShubhS9](https://tradingqna.com/u/ShubhS9)
#### Post date: [December 31, 2020, 4:07pm UTC](https://tradingqna.com/t/taxation-on-speculation-trading/98917/2 "2020-12-31T16:07:18Z")

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@Quicko can you.

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### Author: ![San78](https://tradingqna.com/letter_avatar_proxy/v4/letter/s/ba9def/32.png) [@San78](https://tradingqna.com/u/San78)
#### Post date: [December 31, 2020, 5:12pm UTC](https://tradingqna.com/t/taxation-on-speculation-trading/98917/3 "2020-12-31T17:12:43Z")

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@Vast_Gupta

No tax audit is required as the turnover is below the threshold limit.

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### Author: ![Quicko](https://tradingqna.com/user_avatar/tradingqna.com/quicko/32/19226_2.png) [@Quicko](https://tradingqna.com/u/Quicko)
#### Post date: [January 5, 2021, 6:54am UTC](https://tradingqna.com/t/taxation-on-speculation-trading/98917/4 "2021-01-05T06:54:13Z")

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Hi @Vast_Gupta,

Tax audit is applicable when:

1. Turnover is above the threshold
2. Profit is less than 6% of the turnover

[![tax-audit-applicability-table-02-838x1024 (1)](https://tradingqna.com/uploads/default/original/3X/5/1/51b89c31ed8a4f1e075d86cf1e8f068c45575a38.jpeg)](https://learn.quicko.com/section-44ab-tax-audit-income-tax)

You can use this [tool to check if is tax audit is applicable to you](https://tools.quicko.com/determine-tax-audit/)