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Tax audit in case of loss from Future and option business

CA Shivani Bhardwaj (Chartered Accountant) (158 Points)

26 December 2021

Plz suggest...an individual has business loss from F&O in first year but turnover is below Rs 1 crore, he has salary income too...total income is more than Rs 250,000 ...so will he liable for tax audit?

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5 Replies

VISHAL JAIN (Self Employeed) (169 Points)
Replied 26 December 2021

F&O turnover calculation is the addition of negative and positive figure indicating profit or loss on that basis decide his income

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Durgesh Vashisth (Financial Consultant) (252 Points)
Replied 27 December 2021

Dear Ms. Shivani,

As per Sec-44AD(5), assessee "whose total income exceeds the maximum amount which is not chargeable to income-tax" can file ITR under section 44AD.

In ur case tax audit is not applicable

Thanks & Regards

Durgesh Vashisth

durgeshvashisth @ gmail.com

CA Shivani Bhardwaj (Chartered Accountant) (158 Points)
Replied 27 December 2021

Sir..plz read my question again...I'm my case itr 3 will be filed bcoz there's loss but my question is regarding audit..whether tax audit will b applicable...loss ochre in first year of business?

VISHAL JAIN (Self Employeed) (169 Points)
Replied 29 December 2021

No not applicable as TO is within specified limit

arpit (student) (163 Points)
Replied 01 April 2024

In case of non salaried filing itr 4
if we have loss of 50000 in f&o and turnover is less than 1 crore, is ir compulsory to show loss and is there any requirement of tax audit in this case.?