Compliance vs Taxation

I don’t assume you ask physician hyperlinks for the medication he offers. Do you?

Thats fully flawed spirit dude, everyone seems to be right here to achieve information if in case you have some please unfold it objectively & scientifically…To that particular level we do take second opinion type different docs and we’re doing the identical right here… since its faceless open platform credibility of the content material posted can solely be validated with IT division sections references and proofs

That being stated:Right here is my understanding:

FnO needs to be thought-about underneath non-speculative head ie: Enterprise revenue
Part 44AB(a) says for FnO particularly reason for its digital Nature: if turnover above 10cr then audit is required.(Which mainly is just not relevant for me trigger mine is ~1L)
However there are different guidelines Part 44AB(e) Tax audit is critical if3.1 Part 44AD(4) turns into relevant AND3.2 Taxable revenue is greater than primary
Part 44AD(4) describes that you must declare revenue at 6% for five years(presumptive taxation: additionally referred to as Part 44AD(1)) failure to try this and tax audit is relevant.

So combining this all collectively i perceive I ought to be going with presumptive possibility even when i’ve a loss revenue of 6% needs to be proven on 1L turnover and pay 30% of that as tax… Thus relieving me of maintaining any books of file and so forth for compliance.

Can some one validate the understanding… @VRV chances are you’ll be proper i simply took time to know the clauses for my very own reference…

Hey @pyarlath,

Within the case of F&O buying and selling the place 100% of the transactions are cashless, the turnover restrict for tax-audit is ₹10Cr. In case your turnover is beneath this restrict, a tax audit won’t be obligatory.

Hope this helps!

revenue of 6% needs to be proven on 1L turnover and pay 30% of that as tax

what do you imply by 30 % tax ? do you might have different revenue ?

Sure, different revenue underneath wage head

I’m not CA however I feel you may present wage revenue with FNO loss. Audit is just not require.

@Jason_Castelino Does audit is relevant on salaried individual ?

Query is which possibility is best ?

For my 12 months 1 2020, whole loss was -18k, 9k loss 9k brokerage + tax. My CA simply filed as the way you talked about in Possibility 2 ( No want to take care of any books or different tax associated docs for the subsequent 4-6-8 no matter no of years ) and simply be free

Does audit is relevant on salaried individual ?

Fno is handled as enterprise revenue, has 0 impact in case you are salaried or not.Audit relevant as per the enterprise flip over

This helps, Okay so Possibility 2 it’s…

However these IT individuals ought to look into this and take away this tax legislation for compliance of audit books and so forth, what if an individual is experimenting with enterprise, he shoudnt be slowed down by displaying earnings simply to get away from compliance burden…

However it’s what it’s…

Declaring 6% revenue and paying tax on it retains issues clear and avoids the entire audit headache. Spending 25k on an audit when your loss is identical? That’s simply painful.That stated, I’d nonetheless maintain monitor of my transactions, even roughly. You by no means know when one thing would possibly come up later. Instruments like crypto monitoring make it simpler to remain up to the mark with out getting buried in spreadsheets or spending hours manually checking stuff.If you happen to’re not planning to proceed with FnO, possibility 2 sounds just like the smoothest path. Works for now, and it saves you from overcomplicating issues.