Speculative and non speculative Income under sec 44AD

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This discussion clarifies the treatment of speculative and non-speculative income under Section 44AD. It confirms that F&O turnover is considered normal business, not speculative. Both regular business and F&O income can be declared under Section 44AD, provided the combined profit is at least 8% of the total turnover. No separate bifurcation is needed if both are declared under 44AD.

Ajay kumar

Ajay kumar (Querist)

05 July 2022 Dear Sir/Mam
let assume as case where I have 18 lac turnover in my regular business shown Income of Rs. 4.22 lacs under sec 44AD and also has Non speculative income under F& O turnover 18 lacs has loss of Rs. 19K Plus Speculative business Income of Rs. 5K now my question is
1)
Can I show my regular business income of Rs. 4.22 lacs and non speculative loss of Rs. 19K under 44AD and speculative income under normal Business Income.
2) If yes whether I have to bifurcate income of normal and non speculative business under 44AD
3) If yes to 2 point than Can i show Non speculative income below 8 % as while combined Income under 44AD not goes below to 8 Percent as per Act.
Kindly reply.

CA Rashmi Gandhi

CA Rashmi Gandhi (Expert)

05 July 2022 First of all F& O turnover is not speculation business it is normal business.

You need to declare 8% on cumulative turnover from your regular business and F&O business