becker
CIBIL
coaching

Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More

ITR3 No Account Case for small Trading profit


Adi Adi   27 November 2020

Hello Folks,

I have below sources of Income :

  • Salary
  • Capital Gains
  • Interest Income
  • Small income from F&O trading

During FY 2017-2018 I filled F&O profits using Section 44AD ( 6%+ profits reported).

By mistake I filled 2018-2019 FY F&O profits under “No Account Case”

“IF REGULAR BOOKS OF ACCOUNT OF BUSINESS OR PROFESSION ARE NOT MAINTAINED, furnish the following information for previous year …”

I have not selected any section here and have selected No for Audits.
FY2018-19 returns is already processed now.

Now while filing the returns for FY 2019-20 I realized I am out of Section 44AD since I missed last year, So I cannot use it now due to limit of 5yr by Income Tax rules.

What should I do now to show F&O trading profits :

Should I file under “IF REGULAR BOOKS OF ACCOUNT OF BUSINESS OR PROFESSION ARE NOT MAINTAINED, furnish the following information for previous year …” and NOT select 44AD. What are the repercussions If I do the same thing this year.

My turnover is hardly 50K and profits are say just 4K in F&O trading

avater

Aditi Kaur (Practising CA)    28 November 2020

CCI Online Learning offers a library of courses for CA/CS/CMA Aspirants from the best faculties in India. Our top notch courses aim to make your journey from a student to a professional, a successful one. To promise a successful career as a professional CCI Online Learning also offers programs like Financial Modeling, MS Excel, IFRS/IND AS Certification Courses that will help you take your career to the next level. Check out the free demo videos here https://www.caclubindia.com/coaching/


ayusmita

ayusmita (Tax consultant)     27 November 2020

ayusmita
Tax consultant 
 353 likes  5249 points

View Profile | My Other Post

Few things I don't understand
but as you opted out from that coincidence ly you can not fill it as previously previous year as per rule so you file as same like previous year itr3

Adi Adi

Adi Adi   28 November 2020

Originally posted by : ayusmita
Few things I don't understandbut as you opted out from that coincidence ly you can not fill it as previously previous year as per rule so you file as same like previous year itr3

Yes thats my plan to file it like last year under "No account case" and NOT section 44AD. The key question I have is why everyone opts for section 44AD and not the "no account case" . Is it just due to higher turnover limits of 44AD ? 

Does this "no account case" has a some catch / conditions apart from 25 lakh turnover limit and 1.25 lakh profit


Leave a reply

Your are not logged in . Please login to post replies

Click here to Login / Register  


Bajaj Finserv

Related Threads


Loading


Trending Tags