Intraday losses taxability + Salaried income

Hi,

- Yes tax audit is required as you are having losses from intraday.

-ITR-3

Thanks

Dear Sir,

Hope you are doing well !

Yes, you will have to get your accounts audited by a CA.

1. Yes, tax audit is required.

2. ITR 3

3. We may help you in ITR filing .

Tax audit is required in two situations:

Having offered the F&O income as business income, you need to maintain books of account and also get them audited under the Income-tax Act (this audit is popularly known as tax audit) if the turnover exceeds Rs 1 crore.

or

If your turnover doesn’t exceed Rs. 1 crore, but you are under losses or your profit is less than 8% of the turnover and your “total income” is greater than the basic exemption limit (i.e in situations where you are also having salary income along with your trading loss/ income).

Thanks & Regards,

Payal Chhajed

The tax audit will depend upon the quantum of transactions undertaken during the year.

The tax form can be 3 or 4 depending upon the exact nature of trading. Intra-day trading need not be business transaction always.

Yes, the Tax audit is always done by a CA and we do Tax audits. And ITR can also be filed by us on your behalf.

The fees can only be decided after discussing the quantum of transactions and other income details.

Yes sir as per my understanding and belief since you have made a loss in intra day and intra day is always considered as business and never as investment and therefore if you can't show income as per 44AD you need to get them audited by a CA, because even though your total turnover is below 1 cr and in intra day transaction turnover is calculated for audit by considering the total of profit+losses as turnover from intra day as per ICAI guidelines.

So even if your turnover is below the limit but if you can't show income under 44AD from such business and since your total income is above 250000 (I am assuming as you are a salaried employee) so it is adviced to get the accounts audited from a chartered accountant and you will have to file ITR 3.

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Thank you

P.S. We also provide service for filing ITR online if you just provide your information on email.

Hi Niket

Tax audit is not required. I can file the return on your behalf.

Dear Niket,

1. Yes as you are having losses.

2. ITR 3

3. We may help you in ITR filing.

Hi Niket,

1. Yes tax audit will be required.

2. ITR 3

3. We can assist you in filing your returns.

Regards,

Nikhil

In your case ITR 3 has to be file as there is intra day (Speculative) loss . tax audit will depend on the t/o if it is > 100 lac then tax audit req.

Hi Niket

1. Yes

2. ITR 3

3. Yes.

It shall vary from one CA to another. You may contact any of us for the details.

As intra-day is considered as speculative business no audit required... but need to file ITR3.

Hi Niket,

1. Yes, if you want to carry forward the losses, you will be required get your accounts audited. Otherwise, you can show 8% profit.

2. ITR3

3. Yes, fees will vary based on your transaction. It will be in the range if 15k to 20k.

Hi Niket,

Before answering I would like to know what have been your position in the past years on sale of equity shares and intraday gains/ losses. Is the dealing in shares your usual source of income. What is the frequency of delaing in shares / intraday. This would help to understand whether this can be treated as business income or capital gains. What is the turnover for this year on share transfer / intra day transaction.

Regards,

Jasmina

Hi

1.Yes tax audit is mandatory in these case as you have incurred losses on Intraday.

2. ITR 3 can be used.

3.yes we can do it on your behalf.Fees depends on turnover. Can be decided on further communication.

Please feel free to get in touch with phone consultation in case of any clarification required.