Tax Audit Applicability on F&O | CA Rachana Ranade

[@CARachanaRanade]

ICAI has recently issued new guidance note, & as per that the premium received on sale of option is not to be added again in turnover if it is already included in Net Profit calculation. Thus, in our example, the turnover will be Absolute value of Net gain or loss, which is column H. Hence turnover for option seller will be Rs. 3,000 (09:11 to 13:10) & turnover for option buyer will be Rs. 3,000 (13:11 to 18:05).

[@rahulnanavati4864]

Much needed, Great move by ICAI 👍 Thanks for clarification 🙏

[@ankurbakshi]

Thanks a lot for giving this update on the video. I was about to comment and request to please give an update on the new guidance. I have another question. What is the effective date for this clarification. can we revise our prior year it return with the new turnover values ?

[@karan5545]

@@ankurbakshi Its effective from year A.Y 2022-2023, i.e F.Y 2021-2022

[@ajairandhawa1848]

True CA Ranade tour information in T/o is outdated..it is as advice no addition of sake value

[@nikhilrups]

I was just about to write this piece of info. Great work btw.

[@sundaramurthy1784]

DEAR MAM, THIS IS A USER FRIENDLY,USER RELEVANT AND USER URGENT VIDEO AT THE RIGHT TIME,GIVING CLARITY ON TAXATION FOR F&O TRADERS. EXCELLENT

[@CARachanaRanade]

Thank you 😊

[@maganigovardhan2496]

2 Min silence for who all are not being profit in FNO but watching this video 🤣🤣

[@Mallesh_Thumpeti]

Ha. Ha true

[@Itwal_P]

Me too 😅😂

[@Krishn435]

Mem ka koie v video chorne ka nhi .. she iz the goddess of knowledge

[@karthiksk3437]

😅

[@vikasarora1482]

Bhai F n O me ydi loss ho to itr bharne ki jarurat nhi hai

[@adityak6350]

Uploaded on proper time.. Thank you so much 🥰🥰

[@CARachanaRanade]

Thank you 😊

[@akashshah9147]

Thank you so much mam, searching for taxation on f&o from a long time, but not getting proper guidance. This is very clear and useful 👍

[@CARachanaRanade]

Glad to hear that

[@aniketbobade175]

Please do Presumptive taxation and loss on Trading F&O videos as early as possible 🙏

[@Lalitsingh-pm8yp]

Yes please, share the details about presumptive tax structure also.

[@jiralsavla7284]

Master video for F&O related issues, Calculation of T/O for tax audit..

[@dexter_001]

*Yes mam I want to know about presumptive tax structure*

[@MadhurAgarwalDce]

thanks a lot ma'am... I have been reading everywhere about F&O turnover concept but couldn't understand and you taught it in very simple way.... thanks a lot

[@carachanaprwhatsap9426]

ᴅᴍ ⬆️⬆️⬆️ ᴛᴏ ɢᴇᴛ ᴀɴsᴡᴇʀs

[@niloypa21]

Very nicely explained. Please make video on presumptive taxation.

[@rahulnanavati4864]

Ma'am, there has been guidance note issued by ICAI on this section recently say a last week. As per which Turn Over defination has been changed, so request to revise/make a new video for better/correct understanding 🙏

[@Shubham-zx9lv]

Pl revise

[@yogeshbadgire]

Oh my god! So much of the confusion is cleared up because of this video. Thank you so much.

[@yogeshbadgire]

@CA R. ㊉①⑥④①②④④⓪①④② stay away you scammer

[@CARachanaRanade]

Glad it helped! 😊

[@jayendrachoudhary5314]

your video is highly accurate, you are lord of gyan

[@amangarg5753]

Right video at the right time as I also getting messages from ITR Department to fill taxes. Going to learn more about the stock market from you.

[@CARachanaRanade]

Glad it was helpful..

[@udaykale1786]

Hi Rachana Thanks for tons of clarifications. T/O reqd =10Cr. Want to know how can I prepare myself for Tax audit and books of A/C. I was told that because all demat F&O transitions happen online and all reports are available in digital form it's easy to maintain books of a/c. I use a Zerodha trading platform. Can you have a video on how to prepare books of a/c and prepare P&L statement and balance sheet. Also one more question on Advance Tax. How do you accurately predict your15%,45%,& 75% income on 3 adv tax dates. In F&O you are not sure how much profit or loss you will be making at the end of the year. Sorry for a long comment!!!

[@tanujsingh510]

This was really very useful for retail traders who have no idea about taxation on FnO. Thanks a ton Ma'am!!

[@CARachanaRanade]

Glad it was helpful! 😊

[@ajitmagar]

Very SuperB...I was looking for this only...!!! liked...as always...Keep doing such informative videos !!!❤🙏👍

[@Raw_RIDE]

best explanation ever, Rachana is a genius

[@jsuds18]

Thank you for the clarification...was always confusing for someone new to F&O !!

[@mandeepsinghdhaliwal9041]

So much love mam as you gives lots of infomative video time to time. hats off you 😂🙏

[@nitarik10]

yes please do a video on presumptive taxation ..and if our profits are not 6% of the turnover then too we have to file audited ITR

[@prateekpagaria240]

Superb explanation mam ! I never miss your videos. I was looking for turn over calculation here and there,and I were not able to figure out. But this video had cleared all the doubts, and more importantly it came on right time. Thank you so much. And would love to learn about presumptive taxation.

[@CARachanaRanade]

Glad to hear that..

[@hitikpatel007]

It was superb and in depth knowledge. Thank you. also please make a video on Presumptive taxation.

[@sushmaswami165]

Hi mam.... happy to see you. Thank you

[@chpraveen4966]

Great, please proceed.....❤

[@dingdongkk1]

yeah interested to know about presumptive taxation and calculation, it will be enlightened

[@mayurstravelarc]

@Rachana- Brilliantly taught....Super Duper Important:)

[@CARachanaRanade]

Thank you 😊

[@piyushmor4145]

Yes mam please tell us about presumptive taxes 🙏

[@lavkumar8829]

Good informative videos. And please also elaborate the reverse trade (3 option) in calculation of Turnover, so that many of us also get and understand the concept fully

[@animationchildrenrhymes7120]

Everything was crystal clear...Mam can you please elaborate the premium topic it's sincere request

[@gayathridevimani2233]

Great sesion mam very helpful in prepation my paper presentation. Thank you lot ❤

[@CARachanaRanade]

Most welcome 😊

[@shailendrapratapsingh3663]

One of the conditions is Audit applicable if a loss or profit of less than 6% of turnover (for non-cash transactions).

[@akhilchourse5445]

Please make a video on presumptive taxation

[@sridharsv9620]

Thank you so much for very detailed and clear explanations...🎉

[@sarathkumar341]

I have learnt all these things, but the confusion is in the presumptive taxation only (specifically for salaried & F&O). Hope you will explain in next video. Waiting.

[@casomaygarg7197]

In this case , you need to show minimum 6 % profit in F&O ,Plus usual salary income. But if you show profit below 6% (mostly happen when F&O is in Loss) .Then you need to Tax audit done by CA

[@sarathkumar341]

@@casomaygarg7197 Thanks. Does this presumptive taxation applicable (or optional) only if we cross the turnover?

[@casomaygarg7197]

@@sarathkumar341 those sections work in combination. Not in isolation.

[@deepakbajaj8624]

Fantastic explanation of Options & Futures taxation. But strange prediction of turnover 😂. Thank you

[@DeepakLudhwani28]

very informative video, will love to have presumptive taxation video

[@sumitb4u]

You missed the most important part that is ''WHAT IF Loss from F&O and turnover is less than 10 Cr''

[@harshsodhani]

This should be clear

[@redmi3sprime753]

Plz make separate video on presumptive taxation. Thanks

[@CARachanaRanade]

Shall try..

[@Priy6309]

Why not everyone tell about this If your total income including STCG after applicable tax deductions is below Rs 2.5 Lakh, then your total tax liability is nil and also no liability will arise us/ 111A as deduction up to the basic tax exemption limit is allowed

[@rohitindurkar]

Thank you so much Rachna. Really helpful 😃👍

[@anilbelankar5032]

Excellent video, please let us know about presumptive taxation as well. Thank you.

[@JagannadhaRaoT]

pls make a video clarifying when to go for tax audit and when not needed for salaried person doing f&o and stocks trading longterm and shortterm and intraday....

[@muralis7046]

Excellent information about F&O for small traders with low investment where the profit is minimal.

[@CARachanaRanade]

Thanks for the recognition

[@iam_adnan]

Editing team is so good.

[@PeterGerald]

I'm confused why she's saying if 2000 points difference in strike price turnover is 2000. Turnover will be 2000*50 or 2000*25 for Nifty and Bank Nifty respectively on sale of options.

[@lakshmanganiger]

Mam, this is defferent level🔥🔥🔥🔥

[@djscalper4336]

thank u so much.. as a engineering student its like 'dimmag hill gaya' thank u for this effort maam

[@tyagiseema79]

Plz cover a whole series on taxation , carry forward loss etc for cash and F&O segment... 🙏

[@CARachanaRanade]

Shall try

[@Clarityinlife335]

Option maine jiss price par becha 200 Aur jitne par square off kiya 60 Meri jeb mein paisa aaya 140 Turnover bana 340 Premium received while entering a position + profit or loss after exiting position = turnover Waah waah waah ye kya system hai bhai Mera desh badal raha hai peeche ho raha hai. Oh sorry pinned comment nahi padha tha. Mera desh badal raha hai aage badh raha hai

[@gouthamkaranam3825]

thanks mam, finally understood. thanks for explaining very clearly.

[@shekhardeshmukh2902]

Superb presentation 👍

[@CARachanaRanade]

Thank you😊

[@ponmanirajan]

Thank you for the clarification on f&o taxation. How to prepare p&l statement and balance sheet for f&o trading business

[@jiralsavla7284]

Please release video related to presumptive taxation for F&O business..thanx in advance

[@Kimbabysamy]

Please mam put separate video about speculative business

[@CARachanaRanade]

Shall try

[@veereshshetty431]

Yes mam please do a video on tax slabs and presumtive tax 🙏

[@rinalkolte5049]

U are Phenomenal 🤝☺️

[@subhajeetdas3972]

tax auditing was my last semester paper yesterday and we exactly read this things

[@sahajinfochannel1]

Thank you for your comment...⬆️ ContacT the What'sap line above for more information, consultation and advise for profitable investment

[@sreehith_sunku]

Yes mam, do a video on presumptive taxation

[@CARachanaRanade]

Shall try..

[@CARachanaRanade]

Shall try the same

[@dhakshinamoorthytn2974]

Pl post a video about presumptive itr taxation

[@SumitKumar-mp3bq]

you are educating us through your videos .. keep up the good work ma'am Really appreciate it

[@CARachanaRanade]

Thank you 😊

[@deepanshugarg1473]

Maam now 1 ammendment has come in guidance note regarding this. We will be very happy if you will incorporate that ammendment in this video. now the turnover in case of options will be changed in your examples. Thanks from Hisar.

[@rockybadhe]

Madam Great knowledge Please Make a video on presumptive taxes - a loyal pro investor

[@kparthasarathi5868]

Thank you very much mam for sharing very much informative and useful video about tax audit.

[@CARachanaRanade]

Thank You 😊

[@Rahul-cg8yv]

For call option you have paid the premium and hence it will not be taken for calculation of T/o... As per literal interpretation of the law you have to add premium received on sale of option but you are paying premium and hence call option is wrong!!

[@dineshkale4669]

Yeah plz make video on presumptive taxes

[@OmOviKaFunda]

Awesome Me ata tumcha all time Fan🤩

[@karanbodiwala]

Premium is not to be counted in turnover it is probably declared by ICAI committee on direct taxes and revised guidance note soon to be published.

[@ashokkumarchadha692]

Madam would you please throw some light on maintenance of books etc. as also how to do that.

[@advsanjay]

Thank you so much 🙏

[@abhisheksingh-ml4mc]

I would like to correct it's 44AB not 44ab as mentioned . It doesn't matter but you being a CA I expect you to take note of this.

[@braveheart4388]

Everyone's question who came to see the video is what all are allowed expenses which can be deducted from profits? That's the million dollar question. The info provided here can just be downloaded from the back end of any broker.

[@mehulchheda9]

Thanks a lot for clarifying

[@amitlakhani544]

Please mam do video on presumptive taxation

[@manjunathmm-of5ns]

Very informative video, please clarify regarding advance tax for future and options to be paid

[@ggsugaonkar]

Thank you mam 😀 Ur earrings looks superb ❤

[@VikramKriplani]

Thanks! I believe investing with Tax context is useful for Tax Harvesting & mindful actions. Presumptive Income video shall be useful & info. on maintenance of books of accounts when Turnover more than 25 Lakhs and/or Income more than 2.5 Lakhs. 🙏

[@CARachanaRanade]

Thanks for the recognition, I shall surely try to come up with the video on presumptive scheme

[@akshayshinde8089]

Hello mam, please make video on how tax is calculated on swp and how investor can declare it while filing ITR.

[@arvmac09]

This is very useful ma’m. Would love to know about presumptive taxation as well

[@ashishkapila786]

Excellent Madam very informative

[@srikar.s1306]

Hello ma'am this was refreshing.. pl do a video on presumptive taxation pls.

[@dattatrayhivare5564]

Madam your presentation skill is mind blowing.Please make one video on how to analyse/read balance sheet particularly for Bankers while putting credit proposals.Thank you.

[@dattatrayhivare5564]

मी आपले मराठी व्हिडिओ पण बघतो. आपण खुप चांगल्या पद्धतीने समजाऊन सांगता. खरंच मनापासून आभार.

[@CARachanaRanade]

धन्यवाद 😊

[@sunilparulekar]

Thank you very much Mam for this well explained information 👍

[@CARachanaRanade]

Thank you.

[@niranjanrangarajan674]

Hi Mam , Would be more than happy to have your contribution just incase these , F&O is sold before the expiry(Probably intra day F&O as well) and their tax audit applicability just like this practical way . 🤞

[@CARachanaRanade]

Hi, the calculation will be done in this manner only where the value of option (premium) will be considered for gross profit calculations

[@ganeshpathak4700]

very well explained, Thanks a lot Rachna madam, if possible can you also explain tax calculations for profit/loss in equity short selling..

[@freefirelovergaming9652]

Thank you so much mam. Please, do the presumptive scheme for F&O trading

[@SreeInvests]

How about the taxes for the transactions on F&O, Equity, Derivatives- LTCG and STCG etc... these are the costs involved in conducting the transactions. What is the tax treatment. Can you also please make a video on the filing part of both equity, F&o and Futures transactions. The key and important points to be noted for tax filings. Also, If Tax audit, who has to do it? is it a CA,in case if the turnover is more than 10CR? thanks a lot.

[@aarohkaregaonkar2080]

Why you did not consider the lot size while calculating the options turnover ? For example, Nifty 16000 strike call premium is 300, but lot size will be 50. So total buy value will be 15000. At the time of square off, premium received is 400, again lot size 50, so total selling value is 20000. In this case turnover should be (20000 + 5000) = 25000 right?

[@sahajinfochannel1]

Thank you for your comment...⬆️ ContacT the What'sap line above for more information, consultation and advise for profitable investment

[@CARachanaRanade]

Hi Aaroh, lot was not considered for the sake of simplicity, however if we consider lot, below will be the turnover calculation: Say for our case 1 under option seller (from 09:08 to 10:28), The Gross profit will now become -1000*50= -50,000. And the premium recieved will be 300*50= 15,000, hence net profit will be -35,000. So turnover will be premium (15,000) plus absolute net profit (35,000) which comes to 50,000.

[@RoopaliKadam]

You have explained the complex calculation part very well. It helped me. Thank you for your knowledge-packed videos😊. Waiting for the next part. Loss &

[@tamilevil]

No audit.

[@RoopaliKadam]

@@tamilevil Thank you

[@CARachanaRanade]

Hi, this involves a lot of intricacies. But to give you a quick answer, in case one wants to declare loss (& not declare the profit as per presumptive scheme), conservatively one should get the Tax audit done & maintain books where Turnover is upto 2crore (because sec 44AD is involved here). Further if turnover is above 2crore & upto 10 crore then you need to maintain books & need not do tax audit(considering cash payment & cash receipts are upto 5%, as said in the video). And if the turnover exceeds 10crore then tax audit is required to be conducted.

[@RoopaliKadam]

@@CARachanaRanade Thank you

[@NaveenKumar-fu2cp]

After seeing another doubt popped up that the turnover calculation is only for knowing tax audit applicability? And for showing in ITR the same turnover to be considered or just the sale value(ignoring absolute profit and loss) to be considered?

[@lifelessons8475]

Hi mam Thanks for coming to Delhi 😊

[@jiteshrohra]

Thanks for this video Rachana, can one opt for presumptive taxation in case of F&O, considering it is a business?

[@ankushgarg9238]

Is tax audit applicable if turnover is less than 10 Cr but their is a net loss or profit is below 6% or 8% of turnover? Considering assessee have business income only through FNO trading.

[@ashishmhetre1773]

I too want to know the same

[@reddybhargavipuredi3389]

@@ashishmhetre1773 tax audit will be applicable if last year u have declared income under presumption taxation scheme and in current year u are declaring less than 8%/6% or loss and ur income is above BEL then in such case tax audit will be applicable

[@ashishmhetre1773]

@@reddybhargavipuredi3389 thanks for this. But I need more info. Last year I didn't do any FnO trading. I had filed ITR-2 last year. So, how do I know whether I had opted for presumptive or non-presumptive taxation?

[@kvsbabu2124]

@@ashishmhetre1773 presumptive means you have to pay certain % of tax , if you have profit or not ?

[@reddybhargavipuredi3389]

@@ashishmhetre1773 If u have declared your income under 44AD or 44ADA then you have opted presumptive taxation

[@pradyumnagalgali9046]

We need to know presemtive case....and what benifits it has...wwhen to use it.....

[@prashantkamble8776]

and thanks for detailed video

[@CARachanaRanade]

Thank You 😊

[@unknowntoux]

Now more confusion..!! Professional here want to choose 44ADA, got equity Sale n Purchase plus FnO and what if suffer overall loss in FnO..!!! 😲

[@TheANILbisht]

Mam please a video on Presumptive taxation and cash transaction limit ???

[@devendradevidasani7598]

How to maintain books of accounts for cash, future and options trades.

[@sumanvishwakarma5811]

Evry CA calculating in thier own way.. koi add kr raha hai koi multiply ... Dukh is baat ka hai commerce na high school me samjh aaya tha na ab aaraha hai.. Wese b kuch changes aaye hope new video jld aayegi

[@user-dm6zd2so1e]

well understood., but dicy calculation as per rules