hi,
I have salary income of rs.4.5 lac+some CG and f& o loss of rs.3.5 lac on rs.36 lac turnover
can I file 44 ad and declare 6% profit
if yes please let me know how to calculate tax payable amt
1. According to sec 44AD, an eligible assessee carrying on an eligible business whose T.O does not exceed Rs. 2 crores during the year will be eligible to opt presumptive taxation scheme.
2. Trading in Futures & Options (F&O) will be considered as a non-speculative business and it will be eligible to be set off and carry forward as a normal business loss. Hence sec 44AD will be considered as an eligible business.
3. As per sec 71, it can be set off against any other income other than salaries.
4. Hence in your case, since you have a loss under the head F&O it is better to show the loss under the normal provision and carry forward the same rather than paying tax u/s 44AD on a presumptive basis. But you can pay tax @ 6% on the T.O of Rs. 36 lakhs and file ITR-4 relation to it.
Please correct me if the above solution has an alternative view.
CAclubindia
