Questions regarding 44ada plus speculative income

Tax queries 367 views 4 replies

M Agarwal

Consultant

228 Points Joined March 2014

Hello!

I have a freelancing business with turnover less than 50lakhs. I'd like to use 44ada for presumtive income of 50%.

But, I am also active in share market.

I have short term capital loss of: 25,000
Future and option loss of : 11,000
STT, Margin interest, brokerage etc is around: 3,00,000;

F&O Turnover is 90lakhs,
Share(cash) delivery turnover is 3.5 crore.

Now my questions are:
1) I am the sole owner and I hire some freelancers to help me sometimes, pay them in cash. Am I a business or a profession, do I use 44ad, or 44ada?
2) Can someone please explain how to workout the share transaction with my profession/business income? Can I still use presumtive income laws if I have speculative income, and professional income?

Thank you

Replies (4)

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

198424 Points Joined July 2016

1. It will be treated as profession, based on the nature of work. So, section 44ADA can be applicable.

2. As per section 43(5), F&O trading is treated as normal business transaction. Tax audit will be applicable in your case for loss. Secondly transactions in delivery case can also be of trading nature and should be assessed accordingly.