Hi,
An assessee has the following income sources this year:
- Income from business (this was filed under normal rules in previous years but we decided to switch it to 44AD from this year) with ~5-6 lakhs turnover (almost 80-90% as profit).
- Income from Intraday (speculative income) with turnover < 1 lakh.
Business income exceeds 2.5 lakhs but is under the 44AD limit. Also, there is no FnO trading involved here - only normal equity and intraday. Total turnover is < 25 Lakhs.
So my questions are:
1. Am I still eligible to use section 44AD as my primary business is eligible for that?
2. Do I need to maintain books/accounts for speculative business (intraday) separately OR do I need to maintain combined books/accounts for both these business OR am I eligible to not maintain any books/accounts?
3. Where do I declare my intraday income? Is it under Part B P&L (item 65) or under Trading Account?
4. What do I select under the question "Whether assessee is declaring income only under section 44AE/44B/44BB/44AD/44ADA/44BBA" AND "Are you liable to maintain accounts as per section 44AA?"?
5. What do I fill in Balance sheet? Do I fill just the no-accounts case (44AD) OR both sections (as 44AD + speculative) OR only the normal accounts case?
6. Unrelated to this particular case - but at what point does someone dabbling in intraday need to file ITR-3 instead of ITR-2? If turnover is <1,000 - do we still need to file ITR-3? Or, can I show that income under another head such as Other Sources or STCG?
CAclubindia
