I noticed that there are three sections in the P&L section of ITR-3 that appear to be relevant for showing business income when regular books of account are not maintained. If I want to show speculative income without maintaining books, I understand the following:
61AD – Using business code 21009 – Speculative Trading , we can show speculative income. However, the profit should be more than 6%.
64 – “If regular books of account of business or profession are not maintained,” I think speculative income can also be shown here.
65 – This section is specifically meant for speculative activity.
My question is: If the turnover is less than ₹10,000 and there is a net loss, which section should be used?
Ok. Thank you.
However, what I found that when two business codes are entered under 61AD, one for my personal work and one for speculative trading, the ITR-3 form is NOT showing separate rows for each. I have to enter the receipts, profit from both in the same row(s).
And one more question, if I do not enter the values anywhere except under 65, then how it results in double calculation. Just I am showing the loss under 65. Thank you once again. @Quicko
It won’t but then you’re required to keep books of accounts, increasing the compliance burden and you voluntarily open yourself to litigation risk. Also, I’m not sure if that will be considered “opt out”, in which case you’re locked out of 44AD for that business for 5 years?
Actually, the books of accounts need not be kept when we fill 65. It is clearly stated in ITR-3. The advantage is we can show loss and carry forward for 4 years. If at all books are needed, I think we can produce whatever that we get from the broker. I calculated the profit and loss from the documents provided by them which contain details of both short term and day trading data.
One more problem I found is, 44AD does not contain two separate entries for actual business and speculative income.