28 July 2023
He can declare the business u/s. 44AD with Rs. 300/- as presumed profit or file ITR 3 under normal assessment and declare actual loss of Rs. 1000/- which can set off with any other income except salary.
28 July 2023
okay if want to file ITR-3 in normal assessment then how to show it in profit and loss account 1. p&l credit - F & O turnover 2. P&l debit - ? 3. p&l loss - (1000)
28 July 2023
okay thank you sirji , appreciating your fast reply but in case of income tax scrutiny how will we present this case to AO because actually F & O statement does no reflect any amount such as 6000.
28 July 2023
What have you provided is the actual loss as per transaction statements based on turnover calculation based on ICAI guidelines? Have you hide any income? Another option is to provide actual turnover and purchase value i.e Rs. 19.000/- & Rs. 20,000/- respectively.
1. not understand - please if possible simply 2. not hide any income 3. reference of ICAI Guidance note : The total of favorable and unfavorable differences shall be taken as turnover(sale - purchase option is not viable)
28 July 2023
Actually, there are two views for declaration of such transactions under normal assessment, though actual values are preferred. Under both views, there is nothing against law when you are declaring actual gains/loss in the final stage. You can declare it in whatever way you like. Result should be no alteration in the gain/loss as per transaction statements. ITO can penalize you if there is any manipulation of income and there by tax liability.
CAclubindia
