Presumptive Income under Section 44ADA

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This discussion addresses whether a salaried individual who traded currency futures and earned £222,000 can opt for presumptive income under Section 44ADA to save tax. While Section 44AD is mentioned as an option, it comes with a mandatory five-year commitment. Failure to adhere to this can result in tax audit requirements for the remaining years.

ashish marwah

ashish marwah (Querist)

17 June 2024 Dear Sir/Madam

I am a salaried person . I traded in currency future in FY 23-24 and earned 222000/-. Can I opt for the Presumptive Income under Section 44ADA to save taxes. What are pros and cons of the Presumptive Income under Section 44ADA.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

17 June 2024 You can opt for presumptive assessment u/Sec. 44AD IT act, but you will have to opt for the scheme for next FIVE years mandatorily. Otherwise tax audit will be applicable for the remaining five years.

ashish marwah

ashish marwah (Querist)

17 June 2024 thank you very much sir

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

17 June 2024 You are welcome.

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