Tax audit requirement for derivatives Trading business

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abhijeet m. deshpande (Querist)
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26 December 2021 My assessee is a propietor of a trading business having turnover of Rs.75 lakhs. As the net profit shown is less then 8% his books are audited u/s 44AB(e). He has also entered into derivatives trading with a annual turnover of Rs.15 lakhs and a profit of Rs.4 lakhs (i.e. more then 8%). Will he have to audit the books of his derivatives trading business as well. He has not maintained books of his derivatives trading business. Can he opt for taxation u/s 44AD for his derivatives trading business and sec 44AB(e) for his regular trading business

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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26 December 2021 Yes, audit the books of his derivatives trading business required as well.
Audit the trading details put it in Excel sheet.

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abhijeet m. deshpande

abhijeet m. deshpande (Querist)
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26 December 2021 Thanks sir. But can he opt for taxation u/s 44AD for his derivatives trading business and sec 44AB(e) for his regular trading business.

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CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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26 December 2021 That's not possible. Single option allowed combining all the business.