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How is turnover calculated in Tax P&L and how do I know if I need an audit?

The turnover is being calculated in Console just to determine if you need a tax audit or not. We are following guidance note on Tax audit under section 44AB.

  • For Intraday equity — absolute sum of settlement profits and losses per scrip
  • For Delivery equity — sell side value of the stock
  • For F&O (Equity, Currency, Commodity) — the absolute sum of settlement profits & losses for F&O) per scrip and the sell side value of option contract.
An audit is required if, 

  • Turnover for financial year is > ₹1 crore
  • If turnover < ₹1 crore and profitability is less than 6% of turnover (Section 44 AB)