Are You Covered Under Tax Audit

[canikhil]

Haha,

Losing traders are easy to find like sand on the beach. :lol:

My options turnover for this year is ₹32,24,827.17.
Equity short term turn over is ₹7,000.
Equity Long term turn over is 0.

Courtesy of Zerodha backoffice.

here is my advice. File your return. If I take presumptive income, you become liable for filing of return. And that option becomes applicable for next five years. Better file the return with audit. Though yes, it does cost a bit.

 

[aja]

here is my advice. File your return. If I take presumptive income, you become liable for filing of return. And that option becomes applicable for next five years. Better file the return with audit. Though yes, it does cost a bit.

for 8% presumptive income ITR4 or ITR4s?

 

[Smart_trade]

Thanks, ST, for the concern.. but he is very well known CA. I trust him, this is 3rd year. I am escaping.

Is that bcoz of only intraday trades. Or no tax due. I don't know the real reason. But if there is no tax due, I think the penalty is very less for just not doing an audit. IT respect true tax payers.

Anyone can confirm what is fine in my case when no tax is due. Only option turnover is defective.

Let us hope that you will never be caught in scrutiny but the penalty for not doing the audit is 0.5 % of the turnover or Rs 1.5 Lakh whichever is less.Tax paid is immaterial.If less tax is paid,it will attract different penalty.

So in your case the penalty will be more than Rs 1 L so taking that risk and not doing audit is very bad RR trade in my view.

Good luck with your trusted CA.

Smart_trade

 

[aja]

If the tax is NIL,then also there is penalty?

 

[traderniftybull]

No, he is not only one who using such method..All of my trades are intraday and there is surely gray area.
I have contracted with a CA farm attach with RKSV 3 years ago. Thay also said they can do same way for my case.
But it needs the expertise of CA to counter logic, if they challenged. I never challenged, this 3rd year with same process..

Just shared the info..

This is what you think. You will charged under filing wrong information, submitting wrong turnover and concealment of income.

FYI, TO has nothing to do with intraday trading

You said that by adding only profit and loss values as TO, your TO will hit above 2 CR, then think and assume of your TO, if option sell value is added to it.

 

[traderniftybull]

If the tax is NIL,then also there is penalty?

If after various calculations, if no tax is due, then no penalty or interest. But for any wrong step, they (IT dept) can slap various other penalties.

 

[aja]

This is what you think. You will charged under filing wrong information, submitting wrong turnover and concealment of income.

FYI, TO has nothing to do with intraday trading

You said that by adding only profit and loss values as TO, your TO will hit above 2 CR, then think and assume of your TO, if option sell value is added to it.

no,he said his turnover after adding C is 2Crs easily,but he doenst go for an audit irrespective of below or above 2Crs mark.But he pays the taxes properly.

 

[aja]

If after various calculations, if no tax is due, then no penalty or interest. But for any wrong step, they (IT dept) can slap various other penalties.

nahi na,if I have NIL tax,but my TO is above 2Crs and I'm not doing any audit,then there will be penalty on me for not undergoing audit.
That is what ST da saying.

 

[Smart_trade]

In spite of all the above posts,and knowing what is required by law,many will not do audit when it is required.They will pretend ignorance,faith on their CA,wishful thinking etc etc ....but if caught, then they will have trouble....so always be on clear side of legal requirement....if caught, the fight could be very ugly if one is on wrong side.

Smart_ trade

 

[Smart_trade]

nahi na,if I have NIL tax,but my TO is above 2Crs and I'm not doing any audit,then there will be penalty on me for not undergoing audit.
That is what ST da saying.

If your turnover is over 2 cr you need audit even if your income is below taxable limit.So for turnover above Rs 2 cr there is NO escape from audit....audit karna hi padega .

ST