• Section 44ada and fno questions

Hello,

I have fno trades in where there is loss. Also I have income as a software consultant. Can I avail the benifits of 44ADA for my income from software consultancy part and file the trading loss as normal business? 

Also, for FnO trades, is the turnover calculated as an absolute sum of gross profit and gross loss? if there is an overall net loss, do I need to maintain books and get it audited if according to the above turnover calculation, is about 15lakhs?

The other expenses in the fno trade, like, the CTT, Stamp duty, brokerage, other charges, can they be added as expenses to the business?

Appreciate any help.
Asked 4 years ago in Income Tax

Yes you can set off loss from fno trades against professional income u/s 44ADA.

Turnover will be calculated as an absolute of result of each transaction.

Maintenance of books and audit would depend on your turnover, income and such other details.

Yes you can get deduction stt paid and such other related expense.

 

Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.

Thank you

Naman Maloo
CA, Jaipur
4265 Answers
96 Consultations

5.0 on 5.0

Hello,

 

Yes, you can claim Sec. 44ADA Presumptive Taxation for your Professional Income and claim the loss in F&O Trading after the tax audit.

Yes, it is the absolute sum of gains and losses. Books of accounts and tax audit would be required. (Assuming your gross total income is more than RS. 2,50,000)

Expenses mentioned by you would be allowed.

I hope that this answer satisfies your requirements. For further understanding or capital gain calculation, you can contact us directly at or take a phone consultation.

 

Regards,

CA Hunny Badlani

Hunny Badlani
CA, Madhya Pradesh
2608 Answers
16 Consultations

5.0 on 5.0

Hi

 

1. Yes

2. Yes, it is to be calculated as sum if absolute profits and losses. If it is coming to 15 lacs, audit will be required if you're claiming losses and your Gross total income exceeds 2.5 lacs.

3. Yes

Lakshita Bhandari
CA, Mumbai
5687 Answers
908 Consultations

5.0 on 5.0

Dear Sir,

 

Hope you are doing well !!

 

1. You can take the benefit of presumptive taxation scheme u/s 44ada.

 

2.To calculate turnover, sum up the value of your positive and negative trades. Say if you have a positive F&O trade of Rs 40,000 and negative trade of Rs 36,000, your income is Rs 4,000 but your turnover shall be Rs 76,000.

 

3.Yes, Other expenses will be treated as business expenses. 

Payal Chhajed
CA, Mumbai
5188 Answers
288 Consultations

5.0 on 5.0

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