What is audit charges ( approx.) for F & O traders

anyone who has got it done (audit ) for his F & O trades . how much does a CA charge for audit ? where did you get your audit done ? do you also need digital token for ITR filing ?

My CA charges me around Rs.13K. Yes digital certificate is needed.

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From FY 2019-2020, an audit is applicable when:
A) If the turnover is between Rs. 1.00 Crore to Rs. 5.00 Crore, and
B) if cash receipts are more than 5% of the turnover and cash expenses are more than 5% of total expenses.

I other words, an audit not required :

  1. If your turn over is less than 1 cr or
  2. If turnover is between 1 & 5 cr and your “cash” transactions are less than 5% of turnover

All other cases and when the turnover exceeds 5 cr, you will need an audit.

And if you have turnover over 5 Cr, you shouldn’t be worrying about peanuts given to CA…

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You will also need to audit if you are making losses the current FY and want to carry forward the losses to the next FY. Only then you can set off any future profits against previous year losses and reduce tax burden.


6k to 10k for audits in Bangalore

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any contacts pls

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just googled …they are quoting somewhere between 4000 to 50000 + gst :cold_face:

sometime ago read a quora post ( where replier was a fresh CA ) said its work of not even rs 1500 ( but was told by collegues to keep his mouth shut on topic :no_mouth:) …

i think they are charging anything they want as their is no standardisation & taking advantage of ambiguity of rules

iin nagpur …being smaller city than other metros CA / Tax officials dont understand anything about auditing of derivatives & confuse it with share trading

profit lesser than 6 % of turnover rule not applicable ?

You can do set off carry forward without audit too, by filing ITR 3.


Can go for remote filing from CA’s located in metros like Bengaluru, Delhi, Mumbai, Pune, Ahmedabad. These guys know how to audit and can complete FnO part by just by checking up your statements from Zerodha financial year statement and previous filing(if CFL) It can be done between 6-10 K.
There is digital signatures which can be procured and valid for your chosen number of years (CA’s themselves can facilitate this)
If some CA is charging above 10K, then most probably the person doesnt know much about derivatives/capital market stuff. Yourself can ask few questions on the phone and if they blabber, cut the call.


Well I don’t think so. @Quicko am I right ?

@t7support 13K? how much turnover? which city?
I was charged 8K

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My turnover last FY was Rs.7307058. I am based in Thiruvananthapuram, Kerala. My CA is in Lucknow. We share docs and discuss online.


speaking from experience, I have done that for myself.

How is that possible? Can you share here?

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Correct me If I am wrong @Divakar_Dadhich
Section 44AB says if Business Turnover is < 1cr then no audit required. Also Business turnover is < 5 cr also Audit not required provided cash transactions has to be less than 5%.

In ITR - 3 We should not go under 44 AD section. But these needs a P&L and Balance Sheet to be maintained (Books of accounts to be maintained).

Below is the screenshot from ITR - 3 Excel utility and Sheet name is Profit and Loss.
If we fill 13 to 60 in this case books of account has to be maintained. And F&O turnover is < 5Cr (assuming cash transactions < 5%) we don’t need CA Audit.

Below screenshot is also from ITR - 3 Excel utility and Sheet name is Profit and Loss.
Here if you go with 61-65 which comes under Section 44AD, 44ADA, 44AE and our profit is < 6% or if we incur losses then CA audit is mandatory with all books of accounts. Here our turn over should be < 2 cr. Else we can’t utilize these sections.

simply if you use 13 to 60 pointers (in the image) in the balance sheet and don’t go for 61 to 65 (which is 44 AD, 44ADA, 44AE) and your turnover critieria setisfies then no need of Tax Audit.

We have to go for 13 to 60 else 61 to 65 any one of these not both. Any CA’s here correct me if I am wrong.

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previously i had no knowledge on this subject . but after little research i came to know:
Audit is applicable only if :

*(1) turnover more than 5 cr ( increased to 10 cr from this year )

(2) 6 % AUDIT rule (subsection 4 of section 44AD) is applicable only >>> if opted from presumptive taxation scheme in any of previous 5 years. ( under subsection (e) )of section 44 AB .

it is clearly stated by income tax department >>>

screenshot of subsection (e) of section 44 AB (audit of accounts ) >>

screenshot of subsection (4) of section 44AD ( Special provision for computing profits and gains of business on presumptive basis.) >>

source : income tax website :

(1) Section - 44AA, Income-tax Act, 1961-2020 ( Maintenance of accounts by certain persons carrying on profession or business.)

2 . section 44AB of Income-tax Act, 1961-2020 (Audit of accounts of certain persons carrying on business or profession)

  1. SECTION 44AD of Income-tax Act, 1961-2020 (Special provision for computing profits and gains of business on presumptive basis.)
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Hi, help this helps


Audit if loss or profit < 6% is required only if you use presumptive taxation (ITR4) under sec 44AD. If you have F&O loss or F&O profit < 6%, then you can skip audit if you file ITR3 (of course, condition is that <5% cash tx and turnover<10cr for FY21-22 onwards).

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