Comment on Taxation for Traders - Introduction

Hi Nithin,

Recently I have been following Zerodha on taxation part of F&O. Appreciate all the effort you are incurring in clarifying the doubts of traders with so much clarity and detail. I too have a query, request your 2 minutes of time. I have been observing in your replies that if turnover in F&O less than 1 crore and profit less than 8%, audit is compulsory, probably because of 44AD. But if you see 44 AD(5) it clearly includes “and whose total income exceeds the maximum amount which is not chargeable to income-tax” meaning even if i have profit less than 8% turnover, audit is required only if profit is greater than 2.5 lakh, [max amount not taxed]

My doubt is what is the total income, is it only business income or we should include salary also

http://taxguru.in/income-tax/loss-return-turnover-1-croreno-audit-44ab.html

My salary – taxable income is 3 59 440
F&O turnover – 9 42 352 Loss is 69 132
Delivery – Buy value – 26 28 941 and sell value is 26 95 557. So profit is 66 616

please assist what to be done, ITR or Audit

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