I have 18K loss in intraday. Tax audit will cost 10K+.
I read in thread, that I can show 8% as profit and avoid tax audit. I want to know if that cause any trouble in future?
I don’t want to spent 10K+ for CA services at this time.
Also if anyone know cheap/affordable CAs also, it will be helpful (not ClearTax)
Intraday cash segment is considered as speculation business which should be disclosed separately.
Loss can be carried forward and set off against speculation business alone.
Tax audit depend on turnover and not on P/L.
Dear sir it depends upon the turnover if turnover is in lakhs and you declare profit (while actually you made a loss)then we cant say anything concrete.
This is not correct as far as i know.
Salary income is computed separately and does not come under 44AB.
Tax audit is for business income only .
So if your turnover is under the limit mentioned in 44AB, it doesn’t matter if you have loss. Tax audit is not applicable. No reason to go for presumptive basis as you cannot get benefit of carry forward and set off of loss.
If the Turnover is upto INR 1 Cr, profit is less than 6% of turnover and Total Income is more than Basic
Exemption Limit, Tax Audit is mandatory.
In your case, if the total income is less than the basic exemption limit of INR 2,50,000, Tax Audit is not applicable. You can thus prepare financial statements and file ITR-3 by claiming the intraday loss as speculative business loss.
However, if Tax Audit is applicable, you may report 6% of turnover as profit to avoid the same, It must be noted that the Assessing Officer may issue an income tax notice.
Here is a CA Assisted Plan for filing Income Tax Return for trading income ITR for Intraday Traders. If you are a Zerodha Trader, you can avail of a 20% discount.