• What profit earned from Commodity Future Trading be taxed under presumptive taxatation - @6% of turnover or the actual profit?

I am an individual engaged in the FNO trading and share trading apart from home tutions.
 All the past years I have been filing returns under the presumptive taxation, showing income from Shares under the capital gain head and the nominal income from FNO in the equity market under the presumptive basis @ 6% as business income. 
However, this financial year 2025-26 I also did commodity future trading and have earned a profit of Rs. 50 Lakh during FY 2025-26 . The turnover is around Rs. 1 Crore. So the actual profit % is 50%. I want to show the Income under Presumptive Taxation. Kindly answer the following queries regarding this.
1. AOn what profit is tax payable? @6% of declared turnover or actual profit of Rs. 50 Lakh.
2. If 6% of turnover is declared as profit, then the excess profit earned over 6%, will it be treated as unreported income by the Income Tax department? 
3. Is there any other way to save tax, i.e., can I show some salary to an employee, or is there any other way to reduce tax? Please suggest.
Asked 15 hours ago in Income Tax

1. Tax on what amount?

  • Tax on actual profit of Rs. 50 lakh, NOT 6% of turnover

2. Excess profit - unreported income?


  • Yes - declaring only Rs. 6 lakh (6% of Rs. 1 crore) when actual profit is Rs. 50 lakh = Rs. 44 lakh unreported income
  • Risk of penalties and scrutiny

3. Ways to save tax?

  • Claim legitimate business expenses (brokerage, internet, professional fees)
  • Employee salary (must be genuine)

  • Under 44AD you can’t separately deduct salary/expenses; to deduct expenses you must shift to regular books and declare actual profit.

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Happy to help further! 😊

Shubham Goyal
CA, Delhi
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