Check Tax Audit
Applicability

Select financial year, residential status, income sources and financial situation to check tax audit applicability u/s 44AB

Basic Information

Financial Year

2020-2021

2021-2022

Residential Status

Resident

Non-Resident

Choose Your Income Sources

Choose Your Financial Situations

Result

Calculate Again

Other Tools

Income Tax Calculator

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ITR Form

Track
ITR Status

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QuickoIncome TaxToolsCheck Tax Audit Applicability

Check Tax Audit Applicability

Select financial year, residential status, income sources and financial situation to check tax audit applicability u/s 44AB

Basic Information

Income Situations

Financial Situations

Result

Basic Information

Financial Year

2020-2021

2021-2022

Residential Status

Resident

Non-Resident

Choose Your Income Sources

Choose Your Financial Situations

Tax Audit

FY 2020-21 Resident

Income Situations Edit

Financial Situations Edit

Calculate Again

Other Tools

Income Tax Calculator

Know Your
ITR Form

Track
ITR Status

Check PAN Card Status

FAQs

I have a loss from Trading, what is tax audit applicability?

Tax Audit as per Income Tax Act is applicable: 1. If the total Trading Turnover in a financial year is up to INR 2 Crore and net profit is less than 6% of the trading turnover 2. If the total Trading Turnover exceeds INR 2 Crore irrespective of profit or loss The limit of turnover to determine tax audit applicability has been increased to Rs. 5 Cr under Budget 2020. The new limit is applicable from FY 2020-21. Therefore in the case of loss from Intraday Trading or F&O Trading, Tax Audit is applicable.

What is the due date to file ITR in the case of a Tax Audit?

If Tax Audit is applicable, the due date to file Income Tax Return is 30th September. However, under Budget 2020, the due date to file ITR in case of Tax Audit FY 2020-21 onwards has been amended to 31st October. ITR should be filed only once the Chartered Accountant files the Tax Audit Report (Form 3CB-3CD).

How do I calculate Trading Turnover for to check tax audit applicability?

Trading Turnover should be calculated to determine the applicability of Tax Audit as per Income Tax Act. Absolute Turnover is the sum of the absolute value of profit and loss of each trade during the financial year. 1. Trading Turnover for Intraday Trading = Absolute Turnover 2. Trading Turnover for F&O Trading 3. Futures = Absolute Turnover 4. Options = Absolute Turnover + Premium on Sale of Options

Can I claim my trading loss in the ITR without going for Tax Audit?

In the case of a loss from trading income, Tax Audit as per the Income Tax Act is applicable. If the ITR is filed without Tax Audit, the Income Tax Department may issue a Defective Return Notice under Sec 139(9) and the Assessing Officer may also impose a penalty.

My profit is more than 6% of Turnover. Is Income Tax Audit applicable?

In the case of traders, if the profit is more than or equal to 6% of Trading Turnover, Tax Audit is applicable in the following situations: 1. If Trading Turnover is between Rs.1 Cr and up to Rs. 2Cr and the trader has not opted for Presumptive Taxation under Sec 44AD 2. If the Trading Turnover exceeds Rs. 2 Cr

How to check if Income Tax Audit is applicable?

To check if income tax audit u/s 44AB is applicable: 1. Select financial year 2. Select residential status 3. Select income sources 4. Select the financial situation

Is tax audit compulsory in case of F&O loss?

Tax Audit as per Income Tax Act is applicable: 1. If the total Trading Turnover in a financial year is up to INR 2 Crore and net profit is less than 6% of the trading turnover 2. If the total Trading Turnover exceeds INR 2 Crore irrespective of profit or loss The limit of turnover to determine tax audit has been increased to Rs. 5 Cr under Budget 2020. The new limit is applicable from FY 2020-21. Therefore in the case of loss from Intraday Trading or F&O Trading, Tax Audit is applicable.