You have declared your turnover of 1 crore. You have paid your tax at 6% under presumptive taxation. You have not underreported your turnover. SO you have complied with the provisions of section 44AD. Now if the AO asks about our investments, we can say that we had a turnover of 1 crore, as is declared and we made our investments from the said amount.
Now what exactly do you think the AO will challenge?
I think you are not familiar with presumptive taxation and you are confusing yourself. No law has been broken, no turnover has been under-reported.
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I have also confirmed this with my CA associates
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Okay boss. You are right. 
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He is being funny. Enjoy the weekend.
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Yeahh. Itās fine. Everybody has right to their opinion. You too enjoy your weekend.
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I was reading more on this and found this interesting. If you guys feel itās relevant then read. Otherwise ignore.
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I really found this thread and each of yours argument relevant.Keep sharing your views and other on this topic, this year FNO turnover for option sellers have decreased considerably so presumptive taxation is good option. But , yeah its case by case and one need to know all the edge cases and ramification of this scheme.
Keep sharing your thoughts,arguments and articles.
Good read.
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Thatās the penalty for concealing your income. So always declare your income rightly.
Why are you worried? You have nothing to worry, if you are on the right side.
Please read the comments at the end of the link you gaveā¦here is my copy/paste from a valid comment
Kokkarne Prabhakar V/S Income Tax ITA No.1239/Bang/2019
Thomas Eaper V/s Income Tax ITA No.451 /Coch/2019
Girish Yalakki Shettar V/s Income Tax ITA No.354/Bang/2019
Smt Honey Rahulan V/s Income Tax ITA No.150/Coch/2020
Dinesh Kumar Verma V/s Income Tax ITA NO. 1183/MUM/2019
Smt Sumit Gehlot V/s Income Tax ITA No. 176/Jodh/2019
Syed Maqsoodilaa V/s Income Tax ITA No.397/Bang/2019
or check this link
https://indiankanoon.org/doc/16818226/
Can you please point me to law wording about 44ad on income tax website or some court website - I donāt think it says anywhere that it has to be 6% of turnover or actual profit
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Please check this link
https://incometaxindia.gov.in/Tutorials/13.%20Tax%20on%20presumptive%20basis%20in%20case%20of%20certain%20eligible%20businesses.pdf
and read multiple choice question no. 9
Where income tax dept says - āāincome will be computed on
presumptive basis, i.e. @ 50% of the total gross receipts of the profession. However such person can declare income higher than 50%āā
So it is personās choice - it not mandatory to report higher income.
On this link
if you scroll down -
you will find
Though the PTS provides for taxable income to be 8%/6% of turnover or gross receipts, taxpayers can voluntarily declare a higher income on their tax return.
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When you say higher income it should automatically mean [Income- Expenses( which can be claimed for deduction )]. People here are looking at only one side of equation i.e. the broker reports are showing more income than what is claimed in presumptive taxation. But the broker report is not showing the expenses part of the equation. And income tax liability is calculated after deducting expenses. Even a court vedict said that the assessee can not be forced to provide details of its expenses as it will defeat the whole notion of presumptive taxation.
I have a query if anyone may pls ans. Last year I had some losses in F&O and same was reported in ITR3. This year I only have salary income and capital gain. The query is how to set-off the previous year F&O loss in current year ! Which ITR form do I need to file ?
Any help appreciated.
Hi @Jason_Castelino I was just reading through the thread and found your answer intriguing. I just had some queries on the question you put forward.
You pointed out that the AO can question an investment of 90 L if the profit declared is 6L.
If I understood your theory correctly, here are my questions:
- Canāt this investment be from money we got as a gift from family or say our savings from past years or literally any other source?
2)This investment couldāve been made over multiple financial years and the profits from that couldāve accumulated, right?
My question is why would our investments (whatever amount it may be) be tagged in any way to the profit we declare in a particular business(trading).
Kindly excuse me if I am missing any point here. Looking forward to your response!
When a notice is raised, you definitely get an opportunity to justify. You can give whatever reason you want. It can even say itās your drivers income. 
(If you know the reference)
As per our existing tax provisions the burden of proof is on the assessee.
6% of turnover or actual profit whichever is more. so how can you take advantage.