Dealt in F&O transactions but have no Idea about applicability of Tax Audit?

Dealt in F&O transactions but have no Idea about the applicability of Tax Audit? Normal business turnover is based on sales & thus reaching the limit takes time. But in F&O it reaches the limit easily as each lot is valued high, Limit is reached easily. S-43(5) of IT Act, 1961 has excluded transaction of F&O (Equity) from the speculative transactions. i.e. F&O (equity) income will be treated as Normal business Income Any expense done in connection to this business will be allowed as an expense and can be claimed while preparing Tax computation. For computing the T/O limit, the Following things should be added:

a. Profits from the trade

b. Loss from the trade

c. Premium received from sale of Options

d. In case of Reverse Trade, the difference should also be added

(Limit as applicable in other cases discussed earlier) NOTE: In the case of Delivery Based Transactions, Gains would be treated as Capital Gains.