Will i need tax audit for my FnO transaction?

#1

I read that tax audit is required if turnover is more than 1 cr, but it may also be required if you need to carry forward losses.

Below is my zerodha stmt 2016 -2017
Total turnover 677816.25

my total turnover FnO is less than 1 cr, do i need to do tax audit ? If i even do wil i be able to carry forward my losses ?
Please advice ?

#2

If your total income is less than 2.5lks ( trading losses + all other income), you would not need an audit. But otherwise yeah, since your profit is less than 8% of turnover. And yes you can carry forward your losses if returns filed in time.

Check this module for detailed info: https://zerodha.com/varsity/module/markets-and-taxation/

#3

thanks Nithin…

#4

Hi Nitin,

Thanks for your reply.

Just one more query, for FY 2016-2017 I had filed ITR but i did not do tax audit. My FnO transaction profit is less than 8% of turnover so i would require audit.

Can i do tax audit now with revised ITR ? what will be the last date of filing revised ITR with tax audit for FY 2016-2017?

Thanks
Sidhesh

#5

Audit case this year is extended till October 31st.

#6

You can revise the return with Audit within one year of filing of original return.

#7

MY FUTURES TURNOVER = 548303.75
MY OPTIONS TURNOVER = 71526.00
TOTAL TURNOVER = 619829.75

DO I NEED TO AUDIT MY ACCOUNT?

Options realized profit (-17820.00)
Futures realized profit 16073.75
Total realized profit ( -1746.25)

1 Like
#8

You need to also calculate income from other sources as well…If total income is less than 2.5 lakh you don’t need audit .

Just with above information since your profit is less than 8% of turnover. You require audit .