Derivative Trading Income & Section 44AD

Tax queries 2811 views 6 replies

IS DERIVATIVE TRADING BUSINESS COVERED UNDER SECTION 44AD ?

PLEASE HELP ?

Replies (6)

YES IT MAY BE COVERED  , BECAUSE AS PER SECTION 44AD ANY BUSINESS CAN BE COVERED UNDER THE PERVIEW OF THIS SECTION EXCEPT THE BUSINESS OF PLYING , HIRING OR LEASING GOODS CARRIAGE( i.e. SECTION 44AE) .

8% OF GROSS INCOME FROM DERIVATIVES  INCOME WILL BE TAXABLE AT NORMAL RATES OF TAX

THIS SEC IS APPLICABLE ONLY TO RESIDENTS AND ONLY TO INDIVIDUAL , HUF AND PARTNERSHIP FIRM AND NOT APPLICABLE TO LLP 

IF THIS SECTION IS OPTED THAN SECTION 44AA AND 44AB NOT APPLICABLE

NOTWITHSTANDING ANYTHING ABOVE THE GROSS INCOME SHOULD NOT EXCEED  Rs 60 LAKH

agreed with above expert
I think yes. . . . . . . . . .

IN LAST YEAR MY CLIENT (IND) HAD LOSS OF AROUND 1 LAC IN DERIVATIVE TRADING & HIS TURNOVER IS 3 LAC.

TO CARRY FORWARD THIS LOSS IS HE REQUIRE TO GET HIS ACCOUNT AUDITED (AS PER SECTION 44AD) ?

PLEASE REPLY.

PLEASE REPLY

yes it is cover under section 44ad & audit is compulsory for cf of loss.


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