44ad and f&o income

exactly CA Kacham Shekhar, Mr Harshit have a look at sec 43(5) it will help you.

Harshit...

Pls base your opinion with reference to sections and citations..

And F&O business is not a speculative business this is clarified in finance budget itself I think 2005 finance budget. 

Please consult your DT professor immediately

Your understanding of provisions is absolutely wrong

mr. Hiten you are correct in saying that tax audit requirment is only when total business receipts exceeds 1 crores and as per sec 44 ad 8% of his total receipts will be deemed profit. but where he wants to show his profit less than 8%  he is required to get his accounts audited . but where he wants to show his profit less than 8% and also lower than max. limit not liable to tax, he is not reqiured to get his accounts audited.

so if his income is less than 250000 due to loss in f & o transaction , he is not required for audit

hope it will help you

Dear Shanky,

I also agree with you but there are many divergent views among the profession in this matter that audit will be manadotroy when we declare below 8% but they failed or i may be wrong in undersating that audit is necessary when total income exceeds basic exemption limit. obviously this will apply in case of individual and HUF assessee only..

If you are declaring profit less than 8% then tax audit is applicable. In case total income is less than basic exemption limit, then tax audit is not applicable