Santhosh Devulapally (20 Points)
08 March 2024Hi. Iam a doctor by profession. I use itr 4 and 44ada for my returns. This year i have income from f&O trading and capital gains also. I need to file itr 3 this year. I have few queries
1 . Can calim both 44ada for profession and 44ad for f&o as presumptive income or
2. Claim 44ada for profession and f&o income as business income as per tax slab - do i need to maintain book of records here.
3. Do i need to pay advance tax for f&o
RAJA P M
("Do the Right Thing...!!!")
(128091 Points)
Replied 08 March 2024
CA Rashmi Gandhi
(Chartered Accountant)
(86323 Points)
Replied 09 March 2024
RAJA P M
("Do the Right Thing...!!!")
(128091 Points)
Replied 09 March 2024
@ Rashmi Gandhi,
As you said 1 is yes & 2 is no...
Means F&O income is 44ad...???
CA Rashmi Gandhi
(Chartered Accountant)
(86323 Points)
Replied 09 March 2024
Santhosh Devulapally
(20 Points)
Replied 09 March 2024
Ok. There is a mixed opinion about both 44ada and 44ad. Some ppl say we can use both and some say we cant use both at the same time. Which one is correct? Can you clarify on this. Thank you
Santhosh Devulapally
(20 Points)
Replied 09 March 2024
What are books of accounts / documents to maintained for itr purpose. Generally all transactions are done online in f&o
CA Rashmi Gandhi
(Chartered Accountant)
(86323 Points)
Replied 09 March 2024
RAJA P M
("Do the Right Thing...!!!")
(128091 Points)
Replied 09 March 2024
| Originally posted by : Santhosh Devulapally | ||
 |
Ok. There is a mixed opinion about both 44ada and 44ad. Some ppl say we can use both and some say we cant use both at the same time. Which one is correct? Can you clarify on this. Thank you |  |
Sir,
The F & O income can't be file under presumptive scheme.
It must be file u/s 44AA .
So, It's not advisable for presumptive scheme as per above reply by the EXPERT.
Bcoz, It's very much problem.
Ask others opinion as well
RAJA P M
("Do the Right Thing...!!!")
(128091 Points)
Replied 09 March 2024
| Originally posted by : CA Rashmi Gandhi | ||
|
Yes , I have done about 20-25 audits and return of f&o only this year and every return processed successfully | |
It's not satisfied.
CA Rashmi Gandhi
(Chartered Accountant)
(86323 Points)
Replied 09 March 2024
CA Rashmi Gandhi
(Chartered Accountant)
(86323 Points)
Replied 09 March 2024
| Originally posted by : Santhosh Devulapally | ||
|
Ok. There is a mixed opinion about both 44ada and 44ad. Some ppl say we can use both and some say we cant use both at the same time. Which one is correct? Can you clarify on this. Thank you | |
Sir,
Please read the article given under below link , ach and everything will be sorted out..
https://cleartax.in/s/fo-trader-return-filing
RAJA P M
("Do the Right Thing...!!!")
(128091 Points)
Replied 09 March 2024
| Originally posted by : CA Rashmi Gandhi | ||
|
I m doing tax audit ,
so sir definately I was confirmed about the transaction. - YEAH, AS YOU SAID YOU ARE FILED 20-25 RETURNS U/S 44AD. BUT, TAX AUDIT. I'M NOT RECOMMEND FOR 44AD EVEN IF YOU ARE FILED. BCOZ, IT'S NOT ENDED IN YOUR END Also just check the law, it itself said that f&o income is under business - YES , F&O INCOME IS UNDER BUSINESS INCOME. and one can choose any business under Sec 44AD. - BUT, IT'S NOT UNDER SEC 44AD. NOWHERE SAID IT. |
|
Madam,
Still the F&O income can't comes under the purview of sec 44AD
Nikhil Kaushik
(Fellow CA)
(85758 Points)
Replied 10 March 2024
see once you are covered under 44ADA, it automatically means that you are a person who is carrying out a profession covered under 44AA(1). Once that is true, you are disallowed to use 44AD by virtue of 44AD(6):
"......
(6) The provisions of this section, notwithstanding anything contained in the foregoing provisions, shall not apply to—
(i) a person carrying on profession as referred to in sub-section (1) of section 44AA;...."
It does not matter whether a tax return has been successfully filed and accepted. A lot of illegalities/incorrect interpretations get passed over in e-processing. Once a case is picked up for assessment, thats where these interpretations get tested.
On the issue of whether F&O income can be offered under presumptive taxation, absolutely yes. There is no bar on it
CAclubindia
