F&o income and service exports income under section 44ada

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Hello there,

I am happy to join such a great community. I am Roshan Joshi. I have a query which my CA was not able to explain me properly. Please help me with it. My business is to provide IT services to foreign clients. It comes under exports income. I had filled my taxes under Section 44ADA last year. I have started trading in equity F&O this year and generated profits. Can I claim the same under section 44ada and enjoy the same taxation benefit? Can income tax deny my section 44ada if I have a lot of transactions in F&O? Please let me know. Thanks in advance.

Replies (4)
,laam

lql

1. Unless you are providing any specific professional services as listed u/s. 44AA, section 44ADA is not applicable.

2. F&O trading is treated as business and can be assessed u/s. 44AD, no need to club under 44ADA.

Originally posted by : Dhirajlal Rambhia
1. Unless you are providing any specific professional services as listed u/s. 44AA, section 44ADA is not applicable.

2. F&O trading is trated as business and can be assessed u/s. 44AD, no need to club under 44ADA.

Thank you for your prompt response sir. 

1. I wanted to clarify further. I was able to successfully fill the section 44ADA last year as my income comes under the listed professional services. I am asking for this year when I will fill my itr in the coming months. 

2. Can I use both section 44ada for my professional income and 44ad for f&o income? Business is sole propeitor. 

Thanks.

 

" Can I use both section 44ada for my professional income and 44ad for f&o income? Business is sole propeitor?"

Yes...... Why not?

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