ITR
Total business turnover for audit with intraday
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Facts
Yes. The tax audit limit looks at the total turnover of the business. Speculative intraday turnover and non-speculative F&O turnover are added together, along with any other business turnover.
Provisions and law
- Sec 44AB (now Sec 63)Tax audit if business turnover exceeds ₹1 crore, or ₹10 crore where cash receipts and payments are each within 5%
Analysis
With F&O turnover of ₹8 crore, intraday turnover of ₹1.5 crore and freelance receipts of ₹60 lakh, total is ₹10.1 crore, above the ₹10 crore limit. Audit then applies. Keep the computation of each part, since it is the first thing an auditor or officer checks.
Conclusion
- Compute F&O, intraday and other business turnover
- Add them for the total
- Compare with ₹1 crore or ₹10 crore based on cash share
- Get audit if the total exceeds the limit
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