REGARDING APPLICATION OF PRESUMPTIVE SCHEME U/S 44AD FOR FNO

This query is : Resolved

Suresh S. Tejwani (Querist)
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11 July 2024 If books of accounts of any assesse is audited u/s 44Ab and also having FNO and intraday transaction then can he opt presumptive scheme for FNO and can show Profit and loss as positive figure by showing turnover and 6% profit by banking channel?
If no what is the other option to treat such FNO transaction?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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11 July 2024 Tax audit under which sub section of 44AB?
Whether any other PGBP activity other than shares transaction?
Need to check aggregate turnover.

Suresh S. Tejwani

Suresh S. Tejwani (Querist)
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11 July 2024 If audit is done under section 44AB(a) and Turnover Of PGBP other than share is Approx. 6 Cr

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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11 July 2024 If aggregate turnover along with F&O & intraday exceeds 10 Crs. Then tax audit will be mandatory.
Even if it doesn't exceed 10 Crs, but need to check the overall cash transactions. If exceeds 5%, then Tax audit will be applicable.

Suresh S. Tejwani

Suresh S. Tejwani (Querist)
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11 July 2024 In such calculation F&O Turnover would be total turnover or Total of profit and loss during the year?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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11 July 2024 Yes, aggregate of differential value of each trade.

Suresh S. Tejwani

Suresh S. Tejwani (Querist)
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11 July 2024 Then the turnover is less than 10 Cr

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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11 July 2024 Though the ITR utility may allow to file F&O under sec. 44AD, but not supported technically.

Suresh S. Tejwani

Suresh S. Tejwani (Querist)
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11 July 2024 Whether there is any notification to treat such Fno and speculation transaction as business profession by showing gross Daily profit & loss in banking channel and profit of 6% ?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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11 July 2024 No. There is no notification over it. Even the business is not accepted as 'eligible business' by most of the professional. But ITR accepts it, and assesses take its advantage.

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