Audit requirements for stock traders are governed by turnover and profit reporting rules. If total turnover from trading (sum of profit and loss from all trades) exceeds ₹10 crore, an audit is mandatory. Even below this, if profit declared is less than 6% (or 8%) of turnover and total income exceeds basic exemption, audit becomes applicable. Intraday and F&O trades are treated as business transactions, and speculative income must also be reported. Traders under presumptive taxation may avoid audit if conditions are met. Books of account including ledgers, contract notes, and expense vouchers should be maintained for audit purposes. Audits must be done by a Chartered Accountant and filed along with Form 3CD. Filing audited returns late invites penalties up to ₹1.5 lakh. Early planning helps avoid last-minute CA rush. Many traders opt for audit even when not mandatory for transparency, loan eligibility, and seamless compliance. Regular consultation with a tax professional ensures audit readiness.