Presumptive Taxation u/s 44AD
Hello,
1) Is presumptive taxation u/s 44AD specifically prohibited for business income derived from trading in futures and options?
2) Will a taxpayer being assessed u/s 44AD be legally right if he/she declares net profit just equal to 8% of turnover even if the actual net profit is more than 8%?
Regards,
Anil Kumar more
1) Is presumptive taxation u/s 44AD specifically prohibited for business income derived from trading in futures and options?
2) Will a taxpayer being assessed u/s 44AD be legally right if he/she declares net profit just equal to 8% of turnover even if the actual net profit is more than 8%?
Regards,
Anil Kumar more
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Anilji, just the contracts would not suffice but the fact that for the last 5 years you have been showing this as business income will be definitely in your favour. Other relevant factors might be your other occupations, capital employed, etc. You have also to calculate your turnover correctly as per the accounting standards. Also you have to keep in mind the latest provisions which say that if you show less than 8% profit in an year, you can not take benefits of this provisio for 5 years. more
Aug 13
Ravider Goyal Sir, Presumptive taxation scheme does exist. In fact the scope has been widened for FY 16-17 by increasing the turnover limit to 2 crore from 1 crore. more
Aug 13
Ashok Bansal Sir, As such I am declaring my FNO income as business income for the last 5 years but not under 44AD. I understand the contract notes would serve as sufficient proof that the income is derived from trading in futures & options (FNO) and there have rulings to treat the income from FNO as business income. Am I correct? more
Aug 13
As far as I recollect provision for presumptive taxation no longer exists. Please have it clarified from a tax expert practicing in taxation law. more
Aug 13
1. No, it is not specifically prohibited. Though you might be asked to prove that it is your business and not income from other sources. 2. The taxpayer will be legally right. more
Aug 12
