Bhai,
You are unncessary confusing yourself in this matter.
It is very much clear from various posts in different taxation threads of TJ and various clarification/explanations given by CANikhil ji and others.
Audit is compulsorily required, if:
1. Your TO is more than 2 crores (previously this was 1 crores) irrespective of profit or loss.
2. If TO is less than 2 crores (previously this was 1 crores) and profit is less than 8% (BTW, loss is considered as profit less than 8% by these fools, ridiculous, then why coining the term loss)
Now, when audit is not necessary
When condition 2 above is met, but your total income (including loss) from all sources (after adjustment of income, profit and loss of different categories allowed) (but no IT deductions for example of 80C etc) is less than exemption limit (that is 2.5 lakhs for an individual aged less than 60 years)
And how I do it/manage it
Ha ha
What I want to emphasize that when you can plan legally (like legal tax planning to reduce tax liability), then why to go for a compulsory audit. I will again repeat, what I posted earlier.
Yes, give honest taxes to govt (if due legally, and I am neither asking for a wrong declaration of income or TO nor suggesting for tax evasion) and not otherwise
I will again repeat what I said previously,
that when we can legally avoid compulsory audit (mainly for small traders), in case of profit being less than 8% of total TO (including options trading and including sale value of option) then why go for illegal means.