F&O Turnover & Tax Audit Diagnostic
Check if tax audit is required for F&O trading. Computes speculative vs non-speculative turnover, profit ratio, and presumptive eligibility.
Trading Numbers
Audit Diagnostic
Turnover Breakdown
Turnover within ₹3,00,00,000 limit. Can opt for presumptive taxation and avoid audit.
How F&O Taxation & Audit Works
Turnover for F&O: Turnover = sum of absolute values of all F&O profits and losses plus speculative (intraday) profits/losses. It is not contract value.
✍ Income Tax Act, 1961 — Section 44AB
Speculative vs Non-Speculative: F&O income is generally non-speculative business income. Intraday equity is treated as speculative under Section 43(5).
✍ Income Tax Act, 1961 — Section 43(5)
Tax Audit Threshold: Business turnover > ₹10Cr requires audit. Presumptive taxpayers with turnover ≤ ₹3Cr and profit ≥ 6% can avoid audit if 95% receipts are digital.
✍ Income Tax Act, 1961 — Section 44AB
F&O tax rules are complex. This tool gives a directional view. Verify with a CA specializing in trading taxation.