• If carry forward losses, is audit required or not

Hi,
I am trader in all segments (F&O, Intraday and equity). 
Last FY i filed with ITR-3 with 3,50,000 loss. I want to carry forward loss with current year(FY 2018-19) loss.

Please find below my turnover and loss of FY2018-19 (current finance year).

Derivatives (F&O)
-----------------------
Realized Profit Breakdown
Options realized profit	-492410.75
Futures realized profit	38412.50
Total realized profit	-453998.25

Turnover Breakdown (Scripwise)
Total Turnover	2543072.75
Futures turnover	693992.50
Options turnover	1849080.25

Intraday and Equity
---------------------------
Realized Profit Breakdown
Intra-day/Speculative profit	-9442.25
Total realized profit	-117981.90
Short-term profit	-108539.65
Long-term profit	0.00
Turnover Breakdown (Scripwise)
Intra-day/speculative turnover	9442.25

So my query here: 
If i want to carry forward losses, Is it audit required or not?
I believe, no need audit, because my turnover is less than 1Cr and my taxable income is not crossed 2.5LK.
Asked 6 years ago in Income Tax

Hi,

 

Hope you are doing well !!

 

Yes, your understanding is correct.

 

No need of audit for carry forward of losses.

Payal Chhajed
CA, Mumbai
5189 Answers
303 Consultations

Yes, audit is not required if the total income is less than Rs.2.5 lacs. You can carry forward the losses.

Vivek Kumar Arora
CA, Delhi
5022 Answers
1145 Consultations

Hi,

 

Yes, you don't need to undertake audit if turnover is less than 1 cr and taxable income is less than 2.5 lacs 

Lakshita Bhandari
CA, Mumbai
5687 Answers
943 Consultations

Hello Sir,

 

Audit is not required as your turnover is less than 1 Cr.

 

You can carry forward the losses without tax audit.

Karishma Chhajer
CA, Jodhpur
2452 Answers
29 Consultations

Yes no audit required.

 

Since you income is below 2.5 lakh and turnover below 1 crore, however are these your only sources of income?

 

Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.

Thank you.

Naman Maloo
CA, Jaipur
4305 Answers
101 Consultations

Hello,

 

Audit is not required since your total income is less than Rs.2.5 lacs and your turnover is less than 1 Cr.

I hope this answer satisfies your requirement.

 

Regards,

CA Hunny Badlani

Hunny Badlani
CA, Madhya Pradesh
2608 Answers
16 Consultations

Ask a Chartered Accountant

Get tax answers from top-rated CAs in 1 hour. It's quick, easy, and anonymous!
  Ask a CA