top of page
Case study - White.png

F&O Trader Umesh Overcomes Tax Assessment Challenges with TaxBuddy

About the Case

Discover the journey of Umesh, an associate professor and F&O trader who succeeded in completing a complex tax assessment for 2022-23 with the assistance of TaxBuddy.e journey to resolve his tax issues.

F&O Trader Introduction: Meet Umesh

In the complex world of taxes, individuals frequently find themselves dealing with a confusing web of rules and regulations. Umesh, an associate professor with a passion for Futures & Options (F&O) trading, faced a tax challenge during the financial year 2022-23. Faced with difficult tax assessments and notices, Umesh took TaxBuddy's advice, beginning a remarkable journey to resolve his tax issues.

Customer Issue - black.png

Issues faced By


F&O Trader’s Challenge: Umesh's Battle With Odds

  • Umesh is not only dedicated to his profession as an associate professor but also a F&O trader, entering into the complex domain of F&O trading. 

  • Despite his expertise as a F&O trader, the uncertain nature of trading led to significant financial losses, amounting to a declared loss of INR (-)3,77,694, although the actual loss was deeper, at INR (-)5,94,354. 

  • His tax troubles began when he received scrutiny notices under sections 143(2) and 142(1) of the Income-tax Act, challenging his declared income and putting him under the microscope of the Computer-Assisted Scrutiny Selection (CASS).

  • The tax authorities issued notices to Umesh, requesting detailed explanations and documentation to validate the income and losses he had declared. The notice was issued in response to the audit requirement under section 44AB, which questioned why an audit was deemed unnecessary in his case as a F&O trader given that his turnover exceeds INR 1 Crore.

  • This not only put his financial integrity of being a F&O trader to test but also required an expert understanding of tax laws and expert documentation, highlighting the need for professional guidance.

Help - black.png

How TaxBuddy Helped

TaxBuddy's Customized Solutions for F&O Trader Umesh

TaxBuddy approached Umesh's situation with a versatile strategy:

  • Detailed Review: To fully understand the complexities of Umesh's financial dealings, his tax returns, financial statements, bank records, and the profit and loss statement from his broker were thoroughly examined.

  • Expert Guidance: Expert guidance ensured Section 44AB compliance for the F&O trader, confirming that an audit was unnecessary because Umesh's turnover was less than INR 10 Crore. This provided significant relief. Furthermore, it was noted that in the case of Futures & Options (F&O) trading, 95% or more of the transactions were digital, making the INR 1 Crore threshold limit ineffective.

Documentation and Compliance: TaxBuddy’s tax expert expertly organized and delivered all necessary documentation and responses, ensuring transparency and adherence to tax regulations for the F&O trader. Furthermore, relevant case laws and judicial decisions were included to demonstrate the ongoing correspondence between Tax Department notices and TaxBuddy's responses on Umesh's behalf.


  • Successful Assessment: The tax authorities accepted Umesh's declared income, marking the assessment as successful without any adjustments.

Peace of Mind: Umesh successfully resolved the tax notice with the help of TaxBuddy, resulting in no additions to total income, the continuation of carried forward losses, and no additional penalties or demands.

Conclusion - black.png

The Conclusion: 


Tax saving Journey