It says if turnover is less than 2 crore and profit is less than 6%(or loss) tax audit is applicable.
But trading turnover for intraday trading and F&O turnover is to be considered separately and than apply 6% rule?
or combined turnover and 6% rule?
For example, someone has FNO trading turnover of 1 crore and profit of only Rs 6,40,000 (so this is more than 6%) so audit not applicable
Intraday trading turnover is 10 lac and loss of profit is only 40,000 (which is less than 6% so audit is applicable)
But if we combine both – trading turnover is 1,10,00,000 and total profit is 6,80,000 – so tax audit does not apply
but if we consider intraday trading turnover separately – audit apply as income less than 6% of the turnover
So, please clarify if combined turnover and combined profit to be considered or separately?
Hey @curiousvi,
Income from both intraday and F&O trading is classified as business income. Hence, the combined turnover and profit is considered.
If someone doesn’t opt for presumptive business income, then also audit will be applicable?