Option Loss

If a person has Business Turnover of Rs 44 Lacs showing profit u/s 44AD Rs 5 Lacs

He suffered a loss of Rs. 6,000/- in Option Trading. Option Turnover is 2 Lacs

Whether he can club both the turnover and show in Sec 44AD.
(44Lacs + 2 Lacs)

Please Guide
Replies (4)
Quick Summary
This discussion explores whether option trading losses can be clubbed with business turnover under Section 44AD. While inter-head set-off is possible, directly clubbing turnover from different sources under Section 44AD is generally not permitted. The loss from option trading, considered a normal business activity, may require auditing, especially if the turnover from this activity is significant, regardless of the overall business profit.

Inter head set off is possible but clubbing can't be done.

Loss should be Audited .
Loss from Option trading comes under normal business.
But the turnover is only 2 Lacs from Option
Loss must be audited irrespective of turnover
Generally there is no audit of any losses in particular. It's audit of financial position of the concern.

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