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Section 44AD for share trading income

Nikhil Sharma (Government Service) (539 Points)

15 June 2023

Can we report the income from sale of shares under Section 44AD instead of capital gain ?

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9 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (177721 Points)
Replied 15 June 2023

Yes, if have been continuously declaring the share trading income under head PGBP.

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Devansh Sharma (94 Points)
Replied 15 June 2023

Yes , you can declare 6%/8% in 44AD but word of caution here, if you have opted for presumptive taxation in a particular year, and want to declare losses or income at less than the presumptive rate in any of the next five years then You cannot opt for presumptive taxation for five years.
Also Audit will be mandatory for that year if your total income exceeds the basic exemption limit.

sandeepbommisetty (vijayawada) (63 Points)
Replied 20 July 2024

Which business code we can select for sale of shares in 44 AD return?

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (177721 Points)
Replied 20 July 2024

'09028'

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sandeepbommisetty (vijayawada) (63 Points)
Replied 20 July 2024

Thank you for quick reply sir, Can we just declare 6% on sale value of securities, or should I declare actual profit which I had received which is more than 6% on sale value? Will it cause a problem if i just report 6% instead of actual profit which i received?

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Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (177721 Points)
Replied 20 July 2024

Is it intraday trading or F&O transactions?

sandeepbommisetty (vijayawada) (63 Points)
Replied 20 July 2024

It is not intraday, We had nearly 400 transactions of delivery equity sale during the year, since the frequency of these short term trades are more, we wanted to declare it as business income and also the assessee is doing it like a whole time business.