do we need to maintain books of account in case of derivative trading?
The number of options trades is very less and not a salaried person.
Is it mandatory to maintain books of account in this case?
In which case do we have to maintain the book of accounts?
Hi @Jack_R
Since you’re engaged in derivative trading, it is considered business income, so it is mandatory to maintain books of accounts if you are reporting your income under the regular taxation scheme.
If you opt for the presumptive taxation scheme, then, you don’t require to maintain books of accounts. There are certain conditions to opt for presumptive taxation scheme.
Yes.Income of Futures & Options is considered as business income. Therefore, you are liable for maintenance of accounts as per section 44AA and for audit under section 44AB if the prescribed limits in respective sections are exceeded.