Comment on Taxation for Traders - Introduction

Hi Nithin,

Thanks for a gr8 blog.

I talked to a local CA – some guys in his office – I don’t know if they are trainees or otherwise.
What they told me is
(1) It will cost around 30,000/- for Audit.
(2) still no CA will do it because it is tedious to do so in F&O etc case
(3) particularly since they can earn much more auditing a company in the same amount of time,
and hence
(4) better to forgo losses, calculate turnover and declare 8% profit and pay taxes if any! (I don’t come in tax bracket this year even after 8% profits)
(5) They claim (4) is a common practice locally (Mumbai)

yes, I am not able to carry forward losses. but I do not have to pay another 30K and pray to the almighty CA to Audit my a/cs even after paying the demanded Fees. What if I do not get a CA to Audit my a/cs at say 30K?

He has said this after consulting with the CA – owner of the firm.

Ques:
1. What all things are true among this?
2. What is Audit exactly?
3. What do I need to give to the CA and (roughly) how much are the charges?

Do the trader has to undergo one more hurdle?!
After all sorts of KYCs and what not when absolutely “anything goes” all around us??

Thanks once again,

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