Applicability of tax Audit in case of losses from Intra day trading

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Pratiksha (Querist)
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08 January 2022 Requesting for your clarification regarding tax Audit applicabilty on intra day trading losses".
My question is that: Is Tax audit mandatory when we suffer Intra day trading losses and Total income ( excluding losses from trading ) exceed basic exemption limit i.e. 2,50,000 but total turnover i.e. Profit + Losses from trading is below Rs 1crore ?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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08 January 2022 Turnover below one crore tax audit not applicable if you have not opted for 44AD previous years.

Pratiksha

Pratiksha (Querist)
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10 January 2022 Thanks Sir ! I appreciate your quick response.

Request for your help in below case as well :
What if we got Penality order u/s 271B for not getting books of account audited considering the abovementioned case only .( Not opted for 44AD as well in last year )
Where we have just filed ITR-1 to show salary income ( exceeding 2,50,000) and not shown intra day trading losses in ITR ( filed wrong ITR) and hence not carry forward those trading losses too .
Is that Penality order justified ?

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CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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11 January 2022 The penalty order not justified. Go for appeal.
Person is at liberty not to claim loss in ITR.
ITR 1 filed is in order.

Pratiksha

Pratiksha (Querist)
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11 January 2022 Okay Sir Thanks of the clarification.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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11 January 2022 You are welcome......

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