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Tax Audit for F&O IntraDay Trading

Deepak K (Mutual Fund Distributor INSURANCE ADVISOR) (47 Points)

10 January 2021

Dear Sir/Madam,

If Zerodha account is currently showing F&O Tax P&L Turnover of 87 Lakhs & Loss of Rs 3.40 Lakh , Whether Tax Audit will be required after 1 Cr turnover for current FY 2020-2021

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3 Replies

CA. Sourav Sarkar (Chartered Accountant ) (24583 Points)
Replied 10 January 2021

Tax audit will be applicable if turnover exceeds 1 crores rupees but in your case turnover is less than 1 crores rupees so tax audit is not applicable

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Kapadia Pravin (17259 Points)
Replied 11 January 2021

The tax audit limit has beem increased from FY 2020-2021. No tax audit is required.

The threshold limit of Rs 1 crore for a tax audit is increased to Rs 5 crore with effect from AY 2020-21 (FY 2019-20) if the taxpayer's cash receipts are limited to 5% of the gross receipts or turnover, and if the taxpayer's cash payments are limited to 5% of the aggregate payments.

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Murali Shanker Moolmuri (2 Points)
Replied 11 January 2021

My F&O loss is Rs.7,00,000

Consisting of Positive settlements of Rs.15,00,000/- and Negative settlements of Rs.22,00,000/- and Turnover as per F&O calculations is Rs.2,95,00,000/-

Whether my case is Tax audit or not?

In ITR 3 , which turnover should report i.e. Positive settlements of Rs.15,00,000/- or Turnover as per F&O calculations is Rs.2,95,00,000/-

If I report Positive settlements of Rs.15,00,000/- as turnover in ITR 3 than what is the use of Calculation of turnover as per F&O calculations, is it only deciding factor of Tax audit?

If I report turnover of Rs.2,95,00,000/-.as per F&O calculations in ITR 3 than how I arrive my Net loss of Rs.7,00,000/-? shall I put balance figure as purchases.