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Tax related to F n O

ITR 373 views 1 replies

chandra prakash

1 Points Posted on 19 June 2023

1) I have 2 income source, i.e. salary + F n O trading. Which ITR I need to file between ITR-3 and ITR-4?

2) My Salary income is in 30% tax bracket. For F n O my turnover is 6 lakh and Profit is 1 lakh. Can I file under 44AD and pay tax on 6% of turnover(6 lakh) = 36000. Will there be any issue in this? Or do I need to pay tax on the total profit amount of 1 lakh?

Replies (1)

B Durga Prasad

Student

175 Points Posted on 20 June 2023

1) Based on the information provided, you will need to file ITR-3 if you have income from salary and F&O trading. ITR-3 is applicable for individuals and HUFs having income from business or profession.

2) The option to file under 44AD is available for individuals who have income from a business that falls under the presumptive taxation scheme. However, the presumptive taxation scheme under section 44AD is not applicable to income from F&O trading. F&O trading is treated as non-speculative business income, and you will need to calculate and pay tax on the actual profit amount of 1 lakh.

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