Query - ITR-3: Speculative Business under Section 44AD

Taxation
1

I have a query regarding the correct reporting of speculative business (Business Code 21009) when opting for Section 44AD in ITR-3 (AY 2026-27).

From my understanding and testing of the utility:

  1. I can create a separate business with Business Code 21009 – Speculative Trading and opt for Section 44AD .
  2. However, Schedule 44AD provides only one consolidated table for turnover and presumptive income. There are no separate fields for each business code. Therefore, if there are multiple businesses under 44AD, the turnover and income have to be entered as combined figures.
  3. At the same time, Part A – P&L, Item 65 requires separate details of speculative business (turnover, gross profit, expenditure, and net income).
  4. I observed that once Item 65 is filled, the net speculative income is automatically carried to Schedule BP and included in Total Income , even without entering anything in Schedule 44AD.

My concern is:

If the speculative business is also included in Schedule 44AD , won’t the same income be considered twice—once through Part A–P&L Item 65 (which flows to Schedule BP) and again through Schedule 44AD?

So, what is the correct filing approach?

  • Should a speculative business opting for Section 44AD be reported only in Schedule 44AD , leaving Part A–P&L Item 65 blank?
  • Or should it be reported only in Part A–P&L Item 65 , without including it in Schedule 44AD?
  • If both are required, how does the utility prevent double taxation of the same income?

Has anyone tested this in the latest ITR-3 utility or received any clarification from the Income-tax Department? @BB789 @Quicko @TAXIQ.IN @tax007

2

Add screenshots to your question to clarify the exact section of the form you’re referring to.

3

Hello,

If intraday income needs to be reported under presumptive scheme of Section 44AD then only relevant details of Section 44AD needs to be filed leaving the item 65 Part A - P&L blank.

Thanks

4

Doesn’t item 65 also come under presumptive income? The left bar says

COMPUTATION - PRESUMPTIVE INCOME

which enclosed items 61 to 65

5

Do we have to combine all the figures (from all the business types)?

6

yes this is really confusing. there are two ways to fill the speculative income in the presumptive section 44AD as well as in the item 65.
One more thing is under under 44AD, if we add two business codes, the system is showing only one table to fill up. There are not two separate tables - that means we have to combine turnover receipts and profits and enter those values. This is also confusing.

7

What item number are you talking about? In what schedule?

8

in Part A - P & L

9

One thing is item65 in Part A - P & L, what is the other thing?

if you meant 4a of schedule BP, it clearly says it is included:

4a Profit or loss included in 1, which is referred to in section 44AD/44ADA/44AE/44B/44BB/44BBA/44BBC/44BBD/44DA

10

Sir. Following is the screen shot of what is in the P&L section.

image
image1280×720 45.6 KB

One of my question is whether to enter the speculative income in 44AD under presumptive income (i.e. 61. Computation of Presumptive Business Income under section 44AD)
or
under that 65 (i) - (iii)…?
What is in mind is if the profit is above 6% then safely we can choose 44 AD but if not we have to choose 65 (i) - (iii)…? But I am not sure…

11

If you input it both in 61 and 65, what happens in BP or final calculation ?

12

The amount is doubled.

13

This is weird. I’m stuck here too, What did you do?

I’m leaning towards showing the total turnover and total profits from speculative and non-speculative business income combined under 61 and leaving 65 empty

14

64 or 65?

15

Sorry, I meant 65.

There seem to be two possible approaches:

  1. Aggregate the F&O turnover/profit and intraday turnover/profit, report the combined figures under Schedule 61, and enter 0 in Schedule 65.

  2. Report only the F&O turnover and profit under Schedule 61, and report the speculative (intraday) turnover and income under Schedule 65.

On further thought, Option 2 seems safer. If intraday turnover and income are already disclosed in 12a and 12b, but Schedule 65 is left at zero, it could create an apparent mismatch and potentially lead to scrutiny or queries.

16

But if you aren’t declaring intraday under presumptive(Item 61), you’re voluntarily opting out of presumptive scheme and opening yourself to scrutiny and compliance burden. If it is double counting, option 1 is much safer(which is @Quicko 's recommendation).

17

Both approaches have risks. Doesn’t declaring X amount as intraday turnover in one place and declaring 0 as intraday turnover in another place seem more risky? Essentially in one schedule we are declaring that we have speculative business income and in other schedule we are declaring that we do NOT have any sepculative business income by mentioning 0 in 65 (i) and (ii)

18

I don’t think 4-12 should be filled either. Title says

Part A-Trading Account -Trading Account for the financial year 2025-26 (fill items 4 to 12d in a case where regular books of accounts are maintained, otherwise fill items 61 to 65 as applicable)

Shouldn’t presumptive income exclude you from regular books of accounts?

@Quicko Please confirm if Schedule Trading Account Items 4-12 and 61-65 be filled if you chose presumptive taxation

19

I think the correct way is to put it all in item 61 under two business:

21009-Speculative trading
21010-Futures and Options trading

for Intraday equity and F&O respectively.

And

21011-Buying and selling shares

if you’re declaring CG as business income(positional equity trading)

cc: @adianadiadi

20

Ah, you are absolutely correct. Social media was full of messages about how one has to declare F&O turnover separately from this year, that I totally forgot that if we opt for 44 AD, we only need to fill 61 to 65