Tax Audit as per Income Tax Act is applicable:
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.
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).
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.
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.
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:
To check if income tax audit u/s 44AB is applicable:
Tax Audit as per Income Tax Act is applicable:
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.