can someone guide me on how to show f&o trading in income tax return ? in case of loss is it required to get audit us 44AB ? how to calculate turnover? is it compulsory to show minimum 8% profit ?? can i show loss without audit? someone have any guidance material in this regards please share with me
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Guidence on taxation of future & option trading
Replies (4)
Quick Summary
Trading in F & O is considered as a normal business.
Turnover will be addition of all net positions ( Profit + Loss )
You may file ITR without Audit if 8% profit is declared on turnover
Turnover will be addition of all net positions ( Profit + Loss )
You may file ITR without Audit if 8% profit is declared on turnover
The turnover threshold limit for f&o trading is 10 crores (since there's no cash component involved in excess of 5% in either expenses or receipts). unless you declare income under 44AD, there's no requirement to offer 6 or 8% as total income. further there's no requirement to audit your books. you can simply show the loss incurred from f&o trading without auditing
@ Shubham Patel,
You may refer Section 44AB ( FA 2022) for further guidance if you are filing ITR for AY-2023-24
You may refer Section 44AB ( FA 2022) for further guidance if you are filing ITR for AY-2023-24
Pls post your transaction.
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