Confused regarding applicability of books of accounts and audit

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This discussion clarifies whether individuals involved in intraday equity trading, with various capital gains and interest income, are required to maintain books of accounts and undergo an audit. The user is concerned about declaring commission income and its impact on tax provisions like Section 44AD. Expert advice suggests that declaring commission under Schedule OS is permissible, and specific adjustments to the TDS schedule can prevent issues with tax authorities, even with a small commission amount.

Shantanu Bose

Shantanu Bose (Querist)
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20 June 2025 Sir in my account,
Intraday equity trading cash (non f&o): loss 265/
Total turnover: 500/ only
STCG from share: 210000/
STCG from debt mutual fund: 25000/
LTCG from mutual fund: 97000/
Savings account interest income: 45000/
Commissions: 3700/ only (YDS deducted u/s 194H)
Since total income above basic exemption limit of 250000/ and loss in intraday equity,I can't opt 44AD as commission is there.

So,books of accounts and audit mandatory for me?
Please help as I'm confused and worried a bit too,
Thanks

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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20 June 2025 Declare Commission income under Schedule OS. No books of account mandatory by opting sec. 44AD.

Shantanu Bose

Shantanu Bose (Querist)
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20 June 2025 Thanks sir but don't you think that defective return notice may come if commission although miniscule,is declared under OS since TDS has been deducted u/s 194H ?
Thank you

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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20 June 2025 No. Such provisions are allowed. Only thing is change entry in the Schedule TDS 2; as its source from 'BP' to 'OS'.

Shantanu Bose

Shantanu Bose (Querist)
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21 June 2025 Thanks sir for helping me out

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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21 June 2025 You are welcome.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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27 September 2025 Good luck..