Audit for F & O

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PRIYA (Querist)
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12 September 2008 Hi,
I am doctor and my professional income for the financial year 2007-08 is Rs.4 lakhs. During the financial year i traded in F&O. The gross sales in F&O is Rs.369579265/- and purchase value is Rs.370845054/-. The net loss amounted to Rs.1265788/-. Do i come under the purview of Sec 44AB.

Regards,
Priya

CA RAMESH KUMAR AHUJA

CA RAMESH KUMAR AHUJA (Expert)
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13 September 2008 In case of dealing in F&O segment, the negative and positive income from individual contracts is to be summed up. In case the total of the two figures exceeds Rs. 40 lacs, then there is a need for Tax Audit u/s 44AB. Pl note the gross value of transactions(Exposure) is irrelevant to decide whether tax audit is to be conducted or not.