Trading Income + Presumptive Income + LLP Partner - Quicko Help

Hello - This question is for Team @Quicko - I will have income from Presumptive Business, STCG, LTCG, Intraday (very little) and from LLP Profit Share (as Partner) - Can you guide me as to how to go about the ITR3 when it comes to Intraday gains ?

Also - Can I claim any expenses on the intraday? - Does Intraday have to be very high to claim some expenses under Intraday - if Intraday is filed under Business Income?

Is it even possible to file income both from Presumptive Business and Non-Presumptive Business?

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Hi @soumitsaha,

When filing ITR 3, you can add all the income under the appropriate income heads.

Since Intraday is treated as business income, you can claim expenses related to your trading when filing the ITR.
Here’s a list of all expenses you can claim

Since ITR is the summary of your financial year, you should report all your incomes. In case you have presumptive & non-presumptive business incomes, you should report both in your ITR.

Thank you Sakshi - I have a follow up - My GST registration is under composition and I use Presumptive tax regime for the gst business. Is it still possible to claim expenses under intraday? (And my intraday amount for this year is very less - so will we still need to show that income as business income with all headers?)

Hi @soumitsaha

If you take Income from Intraday as normal business income (Non-Presumptive Business), then yes you can claim expenses related to such trading income.
Yes even if the amount is very less we suggest you disclose the same in your ITR.

Can Partner file ITR under Presumptive Scheme if its business income and share of profit from partnership firm is more than 50L ?

Where can I read about Presumptive Scheme in detail ?

Can I opt out from Presumptive Scheme anytime ?

@Quicko

Hi ,

Can we actually show both presumptive business and non presumptive in one ITR

Are there any condition to it

@Private

As per my knowledge. Individual and partnership ( not LLP) can take the benefit of presumptive taxation

professional it’s 75 lakhs receipt ( actual profit or 50% of receipt whichever is higher)*

Others it’s 3 crores receipt ( actual profit or 6/8% of receipt whichever is higher)*

*( Other condition applicableb. With respect to cash and bank transaction)

Additional benefit of presumptive taxation is that we need not pay advance tax every quarter.
Only on 15th March we can make a one time payment for advance tax .

let say I opt for presumptive taxation for FY24.

If I can’t make 6/8 % profit on Total FNO turnover in FY 25, Can I opt out from this in FY25 ?
What about audit requirements if I opt out next year ?

Hey @Private,

If you opt for the presumptive taxation scheme in a financial year, you should opt for it for the next 5 financial years continuously. However, if you fail to do so and opt out of the scheme you will then have to get your books of account audited. Moreover, you will not be eligible to opt into the presumptive scheme for the next 5 financial years.

Hey @Akshat_M,

Yes, you can file ITR-3 and show one of your businesses under regular business and another as presumptive business.

Hey @Private,

Presumptive scheme can be opted for by individuals, HUFs, and a resident partnership firm (not LLP). You can read in-depth about the presumptive taxation scheme here!

What about income from freelancing under presumptive taxation and income from FNO as regular business income.

Hey @Private,

Yes, you can report your freelancing income under the presumptive scheme and the F/O trading as a regular business.

@Quicko

But my overall limit is based on total receipt

For instant

I have 3 business income are as follows

44ADA - 30 LACS
44AD - 50 LACS
regular business - 5 crore

Total - 5.5 crore receipt

Can I still avail the above benefit of section 44AD AND 44ADA

Hey @Akshat_M,

Yes, you can avail the benefits of Section 44AD and 44ADA.

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who can not opt for presumptive taxation ? are there any conditions ?

I read somewhere if someone hold unlisted shares or
director in company or
income is above 50 lakhs

can not opt for presumptive taxation ?

Hey @Private,

The following taxpayers cannot opt for presumptive taxation.

  • Non-Resident Taxpayer
  • LLP i.e. Limited Liability Partnership
  • A taxpayer other than an individual, HUF, partnership firm
  • Taxpayer claiming deductions under Section 10A/ 10AA/ 10B/ 10BA or Section 80H to 80RRB
  • Business of plying, hiring or leasing of goods carriages under Section 44AE
  • A taxpayer with agency business
  • Taxpayer earning brokerage or commission income. Eg: Insurance Agent
    Further, you cannot opt for presumptive taxation scheme if you have a professional income of more than ₹50 Lakhs or Business turnover of more than ₹2 Crores.

Hope this helps!

@Quicko

I think that from this fy the threshold are increased 75lacs / 3 crores ( with certain additional conditions to be fulfilled

Hello @Akshat_M,

Yes, you are correct from this FY the limits have increased to ₹75 lakhs in case of professional income and ₹3 Crores in case of business income. The additional condition is that the cash receipts should be less than 5% of the total receipts.

Hope this clarifies!

but we can still deduct depreciation on laptop and other things in trading under Presumptive taxation.