FNO Trading Section 44AD
This query is : Resolved
13 June 2021
As per my understanding after reading on section 44AD.
Business with a turnover of less than 2 crore can avail benefits
of sec 44AD. (Excluding commission, agency and plying).
I trade in FNO my turnover is around 1.5 crore,
Can I Declare my profit @ 6% i.e., 9 lakhs and pay tax accordingly.
Whereas my actual profit is around 20 lakhs.
What to do in such a case. Please Advise.
Thank you.
Business with a turnover of less than 2 crore can avail benefits
of sec 44AD. (Excluding commission, agency and plying).
I trade in FNO my turnover is around 1.5 crore,
Can I Declare my profit @ 6% i.e., 9 lakhs and pay tax accordingly.
Whereas my actual profit is around 20 lakhs.
What to do in such a case. Please Advise.
Thank you.
13 June 2021
yes you can. please make sure that the turnover is calculated as per the guidance note on the tax audits.
14 June 2021
FNO Turnover calculation
Nifty MAY Bought Sold P/L : 25k P
Nifty MAY Sold Bought P/L : 10k L
Nifty MAY Contract Net P/L: 15k P
Nifty JUN Bought Sold P/L : 15k L
Nifty JUN Sold Bought P/L : 5k P
Nifty JUN Contract Net P/L: 10k L
So the Contractwise Turnover:
May 15k
Jun 10k
--------------
Total: 25k
--------------
OR a Tradewise
25k
10k
15k
50k
-----
55k
-----
Which one is correct?
Thank you.
Nifty MAY Bought Sold P/L : 25k P
Nifty MAY Sold Bought P/L : 10k L
Nifty MAY Contract Net P/L: 15k P
Nifty JUN Bought Sold P/L : 15k L
Nifty JUN Sold Bought P/L : 5k P
Nifty JUN Contract Net P/L: 10k L
So the Contractwise Turnover:
May 15k
Jun 10k
--------------
Total: 25k
--------------
OR a Tradewise
25k
10k
15k
50k
-----
55k
-----
Which one is correct?
Thank you.
27 November 2021
55K is correct.
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