How to show normal business and F&O both under 44AD

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This discussion clarifies how to report income from both a normal business and Futures & Options (F&O) trading under Section 44AD of the Income Tax Act when filing an ITR3. It explains that both can be shown under presumptive income, even if the normal business turnover isn't declared under GST. The guidance also covers selecting trade names and using appropriate codes for share transactions and retail trade, with a note on bifurcating income based on transaction modes.

Bijay Agarwal

Bijay Agarwal (Querist)
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28 July 2022 If one has income from both normal business profit >8% of T/O and also F&O profit >6% of T/O. How to show them in ITR3 under presumptive income. Also note the normal business is under composition scheme of GST. Also what is to be selected for Trade name in case of F&O trade.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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28 July 2022 Code tor share transaction... 09028... Retail Trade...
Declare aggregate turnover in total receipts.
Under 6% column declare F&O turnover profit
Under 8% column declare other business profit.

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Bijay Agarwal

Bijay Agarwal (Querist)
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28 July 2022 So what I understand is we can show both F&O and normal business profit together in presumptive income. Despite the fact that only normal business turnover declared in GST return as F&O doesn’t come under GST. Also Both share trading & normal business codes should be added separately under the presumptive business.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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28 July 2022 Correct, but bifurcation is based on banking/digital transaction & cash mode...

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