Today in this Guide we are discussing about F&O Tax Audit Limit Charges Fees and Turnover Calculation for the Traders. So before starting you have to know about the Audit Limit for the F&O Traders as per the latest budget.

What is F&O Tax Audit Limit ?

As per the Latest Budget F&O Tax Audit Limit is 10 Cr Rupees as F&O Turnover. If your F&O Turnover is more than 10 Cr INR which include the Premium and Buying & Selling of the Future and Option on the same. 

Apart from this if you want to show the F&O Losses then its also required the Tax Audit because you can’t show less than 8% Profit of F&O Turnover in the ITR-3. For more understanding on this you can check out this Guide on How to Show F&O Losses in ITR.

F&O Losses Tax Audit Compulsory ?

Yes, as we checkout above the First rule of Tax Audit is applicable on the basis of Turnover but there is second rule which is applicable on the basis of Profit. So if you want to show less than 8% Profit of the F&O Turnover then  its required the Audit so ultimately for the F&O Losses Tax Audit is Compulsory on the same. You can checkout Below Detailed Guide Video on this -F&O Tax Audit Charges –

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F&O Tax Audit Charges –

F&O Tax Audit Charges are totally Very CA to CA because there is no standard fee for the tax audit in F&O. if we talk about the market price then Charges started from 10000/-INR including the Client DSC. You can hire CA Online and Offline through us on the same.

F&O Turnover Calculation for Tax Audit –

F&O Turnover is provided by the DMAT Broker itself like Zerodha UpStox or Groww etc in their capital gain and f&o statement. So its not required to calculated by the client. But still if you want to know the process then just follow below 3 steps

Step 1 – Calculate the Total Profit or Losses on the Future and Options
Step 2 –  Add the Premium Received when you trade in Options
Step 3 – Add Reverse Minus trade and Difference of Profit or Loss.

Here is the Example on F&O Turnover Calculation –

If we buy 50 Units or 1 Lot Size of Nifty Bank Future at 8000 INR and Sell at 7900 INR then (25*100) – 2500/- INR is the turnover on the same.

Similarly in Option if we buy 100 or can say 4 lots of Nifty Bank calls at 20 INR then sell it 30 INR so there is Profit of 1000 (10*100) is the turnover but in this case you need to add premium on sale i.e 30*100 – 3000 so your net turnover is 1000+3000 = 4000 INR.

Hope Now your all doubts cleared on F&O Losses Tax Audit Limit with Charges and Turnover Calculation. If you want to hire a F&O Tax Expert then you can Contact us the same.