ITR3 - Section 44AD skipped - F&O profits

Taxation
1

Hello Folks,

I have below sources of Income :

  • Salary
  • Capital Gains
  • Interest Income
  • Small income from F&O trading

During FY 2017-2018 I filled F&O profits using Section 44AD ( 6%+ profits reported).

By mistake I filled 2018-2019 FY F&O profits under “No Account Case”

“IF REGULAR BOOKS OF ACCOUNT OF BUSINESS OR PROFESSION ARE NOT MAINTAINED, furnish the following information for previous year …”

I have not selected any section here and have selected No for Audits.
FY2018-19 returns is already processed now.

Now while filing the returns for FY 2019-20 I realized I am out of Section 44AD since I missed last year, So I cannot use it now due to limit of 5yr by Income Tax rules.

What should I do now to show F&O trading profits :

Should I file under “IF REGULAR BOOKS OF ACCOUNT OF BUSINESS OR PROFESSION ARE NOT MAINTAINED, furnish the following information for previous year …” and NOT select 44AD. What are the repercussions If I do the same thing this year.

My turnover is hardly 50K and profits are say just 4K in F&O trading

2

@Quicko can you.

3

Hi @dexter007,

Since your trading turnover for F&O is minimal, you can opt for either of the following options:

  1. File under regular books of accounts and show actual profits
  2. File under no accounts case and report your F&O profits. There won’t be any repercussions for that.
4

Thanks for the response
I am inclined on second option

  1. File under no accounts case and report your F&O profits. There won’t be any repercussions for that.

So in this case no audit, no books , minimum 6% profit upto 25lakh turnover right ?

5

Hey @dexter007,

In case you are opting for - File under no accounts case, you need to show your actual profits.