Sec 44ad on future & options trading
This query is : Resolved
09 May 2017
AS per ICAI Guidance Note, with respect to derivative contracts, Turnover means the total of positive and negative or favorable and unfavorable differences. Premium received on sale of options is also needs to be included.
My query is whether the above calculation can be used for arriving turnover and declaring income of 8% under Section 44AD?
My query is whether the above calculation can be used for arriving turnover and declaring income of 8% under Section 44AD?
09 May 2017
No. That is not to be considered for 44 AD
09 May 2017
Can you clarify how to apply Section 44AD on such cases?
09 May 2017
Why do you want to apply section 44AD? Are you in a profit which is more tha 8% of the trade value or what?
09 May 2017
If the profit is less than 8% on turnover, then audit is applicable. In my case, profit is less than 8% on turnover determined as per ICAI Guidance note. So Can I declare 8% on such turnover?
09 May 2017
Can you please tell me the reason as to why you are of the opinion that the activity in FNO by you falls under ELIGIBLE business u/s 44AD?
09 May 2017
As per Section 44AD, any business other than Profession referred in Sec 44AA, Commission / Brokerage and agency business are eligible business. So F&O Trading is a eligible business.
09 May 2017
Please........ let us go to the basics....... leave aside for a while what income tax says.....let us focus on your intentions...... Are you doing it as business or investment.....find out your mind set..... if you are doing it for investment... the question of 44AD does not creep in.......
09 May 2017
My Intention is business. So only the confusion arose.
09 May 2017
Better change your intentions.
09 May 2017
Absolute value of the profit and loss is the turnover for 44AD(5) read along
with section 44AB.
with section 44AB.
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