Dear Sir,
Hope you are doing well.
1. Yes.
2. ITR 3
3. No, tax audit is not required.
It is advisable to take a phone consultation for detailed discussion.
Thanks & Regards,
Payal Chhajed
Professional income under presumptive tax and day trading under non presumptive tax
Dear Sir, I have income from engineering consultancy services. For income from consultancy services I would like to go for presumptive tax in my ITR. I have loss from day trading for which I would like to go for non presumptive tax in ITR. My query is - can I go for above in my ITR - which ITR should I use to show both presumptive and non presumptive approach for both the above type of business income - will I be required to get my day trading account audited if I go for non presumptive tax with my turnover less than 1 crore Thank Aseem
Asked 16 days ago in Income Tax
Dear Mr. Aseem,
Thank you for your query.
Based on the information provided:
- Presumptive taxation for consultancy income and normal taxation for day trading
Yes, you can opt for the presumptive taxation scheme under Section 44ADA for your eligible engineering consultancy income, while separately computing your day trading (speculative business) income/loss under the normal provisions of the Income-tax Act. The two activities can be reported independently in the same return, provided the eligibility conditions for Section 44ADA are satisfied. - Applicable ITR Form
Since you have both:
- Professional income under the presumptive scheme (Section 44ADA), and
- Speculative business income/loss from day trading computed under the normal provisions,
- you should file your return in ITR-3.
Merely opting for the normal provisions for your day trading activity does not automatically trigger a tax audit. If your turnover is below the prescribed threshold and you are not otherwise covered by the audit provisions under Section 44AB, a tax audit is generally not required. However, the audit requirement should be examined after considering the method of turnover computation, the nature of trading (speculative/non-speculative), and other applicable provisions of the Income-tax Act.
If you would like, we can review your turnover calculation and trading statements to confirm whether any audit provisions are attracted in your specific case.
Regards,
CA Shubham Goyal
Yes you can file in ITR -3 and no audit is needed (make a note that turnover of intraday trading is calculated in different manner) Kindly consult for that
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