Live Course on Drafting of Appeal and Reply of Penalty Notice by CA Sachin Sinha. Register Now!!

I made Loss in fno but turnover is more than 1 crore, is audit necessary?

anu (miss) (45 Points)

12 June 2022

I am a salaried person with 5 LPA as CTC and in 2021-2022, I purchased option and my turnover went to 1.4 crore and i made a loss of 1 lac rs . Do i require audit ?

if i dont want to carry losses , which ITR should i file

Reply
Follow
Share

32 Replies

Eswar Reddy S (CFO- at NHTF) (58219 Points)
Replied 12 June 2022

Use ITR-4 and you may not require to do tax audit

1 Like

Dnyanesh Deshpande (Aspiring CA) (133 Points)
Replied 12 June 2022

In presumptive you may have to pay tax around 1-1.5lakh(depends), but in audit it won't be required considering 5 lakh salary ctc (-) deductions,. also you can carry forward losses. Tax audit fees will be around 20-30k, audit will be beneficial.

Eswar Reddy S (CFO- at NHTF) (58219 Points)
Replied 12 June 2022

The queriest clearly said that she don't want to carry forward losses

1 Like

Dnyanesh Deshpande (Aspiring CA) (133 Points)
Replied 12 June 2022

Yes sir i read that, but i just gave an alternative. At the end its their descision

anu (miss) (45 Points)
Replied 12 June 2022

If audit is beneficial and I get audited this year. Can you please guide what will be the series of action from next year. Do I have to get audited every year irrespective of the fact that I quit fno

Or next year onwards I will have to fill salary based itr or business + salary one.

Basically I want to know what are the pro and cons of getting audited or filling tax as presumptive gain

Eswar Reddy S (CFO- at NHTF) (58219 Points)
Replied 12 June 2022

If you quit FNO then you may not require to get accounts audited .

You may just use simple ITR-1

1 Like

CA Rashmi Gandhi (Chartered Accountant) (86285 Points)
Replied 12 June 2022

In case you want to get audit, you have to declare 6% on turnover I.e. Rs.8,40,000/- and tax thereon is Rs 70-80 thousands. If you don't want to pay tax you are required to get books audited.

1 Like

Eswar Reddy S (CFO- at NHTF) (58219 Points)
Replied 12 June 2022

@ Anu,

Since you will quit FNO , there is no use of carry forwarding losses.

CA Rashmi Gandhi (Chartered Accountant) (86285 Points)
Replied 12 June 2022

Here question is if tax, not of carry forwarding losses.

1 Like

Eswar Reddy S (CFO- at NHTF) (58219 Points)
Replied 13 June 2022

Read the original query again

CA Rashmi Gandhi (Chartered Accountant) (86285 Points)
Replied 13 June 2022

We all ae competent enough to read query and reply, why you are replying again and again.

1 Like

Eswar Reddy S (CFO- at NHTF) (58219 Points)
Replied 13 June 2022

Then the queriest clearly mentioned that she doesn't want carry forward losses and she may quit FNO

CA Rashmi Gandhi (Chartered Accountant) (86285 Points)
Replied 13 June 2022

But it's our responsibility to clarify him about all aspects.

He can choose option as he want.

1 Like

anu (miss) (45 Points)
Replied 13 June 2022

If I get audited then there is only audit fees that is to be paid and no tax .. this all turnover is from fno and digital payments are done and all money invested is from salary only.

Otherwise In presumptive i have to pay tax on 6% of turnover ie 1.4 cr that is around 8.5 lac and since I m already having income of 5 lac my tax would be around 1.5 lac and above since I have not done any investment last year. And along with this I will have to pay itr fees to ca

I assume audit will be a better choice . Please guide whether there is some catch.