Can f&o loss be adjusted against profession income

This query is : Resolved

Sanket Lalwani (Querist)
Follow

30 October 2015 F&O loss is non specualtive loss as per 43(5), so can it be adjusted against profession income, i guess yes but the trap is sec 44AD, where sec 44AD is not applicable to professionals...so that means i cant adjust the F&O loss in profession income ,,hence i have to report 8% of the turnover of F&O,,and F&O loss will be ignored is it correct?
What if i have HP income does that change my stance

eg:
HP income 1,00,000
F&O loss 90,000 turnover 2,60,000
Profession income 3,00,000

Hence according to me Total income would be
HP 1,00,000
F&O 44AD 8% 20800 (loss of 90000 to be ignored)
profession income 3,00,000

is it correct?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

30 October 2015 It is correct but if you opt for tax audit you can consider F&O loss.

Sanket Lalwani

Sanket Lalwani (Querist)
Follow

30 October 2015 What if i also have a loss of intra-day in cash segment say suppose 50000, then also 44AD is applicable ? and if yes then turnover definition is same as F&O or different.?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

30 October 2015 Then also 44AD applicable. Turnover is total of profit and loss.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now