Yeah I think you do need to maintain books of accounts. It should be easy though, as you can get trade details from Zerodha.
Hello everyone!
I have professional income and STCG this financial year.
Last year i filed under presumptive taxation as i just had professional income and no capital gains.
I went through the above discussion and i understood that i can file under presumptive taxation (44ADA) and capital gains in ITR 3. I went through ITR-3 on the IT website. I even downloaded their Java program.
I canât find any column to file for presumptive income in ITR 3. Like their is a separate and simple column in ITR 4.
Can anyone pls guide me how to go above it? Where to enter the information. The only infomation i have is my gross reciepts for the year.
Pls help.
Thanks and regards.
Itâs there at Profit and loss sheet in the bottom NO ACCOUNT CASE heads.
Itâs not that simple in ITR-3. You need to work around a bit. I think item 4 in Schedule BP is what you are looking for. And also item 35(i) and (ii).
If you look at these, they are disabled by default. I remember there is a way to enable them or get the correct values auto-populated - you just have to file the rest of the ITR correctly and it works. I donât remember exactly how I got it to work as it was a year ago.
great answer.
spot on.
very few know about these options.
Great Point but one q âŚthe moment return is filed under ITR 3 (with presumptive profession income only and capital gains ) does it mean we have to submit PL and BS? Also do we have to maintain books of accounts.
You donât need to maintain proper books of accounts if you file entirely under the presumptive scheme. In general the rules would remain same as if you were using ITR4. You have to use a different form - ITR-3 - in this case to communicate your return to the tax office because you happen to have capital gains/losses, but in my opinion the law and rules applicable (section 44AD/ADA) would not change and you wonât need to maintain proper accounts.
However, for example if you have both business and professional income, for example business income from F&O and professional income from freelancing, and you choose to opt for presumptive income in only one of these, you would probably need to keep the books of accounts for the other one if thatâs applicable for you under section 44aa.
Another case would be if you are declaring using presumptive income but declaring profits to be below the threshold - for example below 50% for professionals.
You may also separately be required to maintain books of accounts in some other cases, for example if you have/had a GST registration I think maintaining proper books of accounts becomes compulsory for the time period you were registered under GST.
But in general I think the entire point of section 44AD and ADA is to give small taxpayers a break from the hassles of accounting and so you generally donât need to maintain proper books if you are filing presumptive income.
And in this case, you would need to fill only the no accounts case in the Balance Sheet and P&L sections of the ITR.
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Can I invest in luidbees if I file ITR4 ? Does this dividend comes under dividend income or capital gains ?
Hello @bharat1080
Dividend income received on LiquidBeeS is considered as Dividend Income as per the Income Tax Act and would be taxable under âIncome from the other sourcesâ and you can continue to file ITR-4.
But they issue unit instead of cash right ?
How does taxation works. First it added to other income source.
What if I sell those unit ? Do I have to pay STCG ?
Better to go for ETFs, which donât pay in units like LIQUID1 or LIQUIDCASE.
Otherwise, yes, dividend income and if you sell Capital gains.
When you sell those units later, the value they had when you received them is treated as your buying cost since you already paid tax on that amount as dividend, so youâll only pay capital gains tax on whatever extra you make when you sell. @bharat1080
My father file ITR 4 with presumptive taxation and does not maintain books of account.
I just want to confirmed that can he invest in liquidbees. No need to sell liquidbees. Only dividend income. So there will be no STCG.
Yep, since heâs not selling those units, thereâs no capital gains event, so no STCG or LTCG applies.
One more thing.
My father cant sell stocks because ITR 4 doesnât have option for Capital Gains.
I am thinking about starting HUF to invest my fatherâs money. Does income of clubbing will be applied here ?
While Capital gains cannot be put in ITR4 and ITR3 is needed, nothing else changes. You can still use presumptive income for whatever your using it for before. Itâs just that you need a extra CG section present only in ITR3.
You canât club STCG under business income â capital gains must still be reported under the capital gains schedule, which ITR-4 doesnât support. If you have any CG activity, youâll need to stick with ITR-3. Offsetting Rs. 850 by making a loss wonât really solve the structural issue.
Please read question before answering.