Query on 8% presumptive taxation

#1
Query on 8% presumptive taxation

Hi,
AY 2016-17 I did some option trade.Turnover was hardly 20Lakhs.So someone suggested me to declare 8% as a profit to avoid audit..I did that though my income was below 2.5Lakhs..
Now I come to know that if you take 8% presumptive taxation scheme,we cant change it for next 5 yrs,so my query is-
1)Do I need to file 8% of turnover compulsorily if my turnover exceeds 2crs mark(by trading options)? or audit is still applicable?

Last year(FY 2017-18),I didnt do any option trading..my Equity turnover is hardly 2.18Lakhs..My overall income is below 2.5Lakhs.
My query is-
2)Can I skip filing the return completely for next 2-3yrs i.e,untill I make above 2.5Lakhs,I dont want to file any return...Is it Ok?

3)Filling under 8% is my mistake,so do I need to compulsorily file return for next 5yrs??(income is below 2.5Lakhs)

Pls reply.

-wa
 

canikhil

Well-Known Member
#2
1. In case the turnover exceeds Rs 2 cr, then you are automatically out of 44AD. In such a case you cannot use 8%/6% option. You need to compulsorily maintain books and offer the true profit/loss to tax

2. Would advise to continue filing the tax return regardless of level of income as you would end up receiving notice from income-tax on account of stock market transactions

3. What did you do for AY 2017-18?
 
#3
1. In case the turnover exceeds Rs 2 cr, then you are automatically out of 44AD. In such a case you cannot use 8%/6% option. You need to compulsorily maintain books and offer the true profit/loss to tax

3. What did you do for AY 2017-18?
Nikhil Ji-
1)Ok,so if we go for audit this year and if next year turnover is very small like 20-30Lakhs,we go for audit or use 8% scheme again?

3)I didnt file return for AY 2017-18

-wa
 

canikhil

Well-Known Member
#4
1. You cannot keep shifting between maintaining books and not maintaining books. So:

- if your turnover is above 2 cr, then you have to anyway get the audit done;
- if your turnover is below 2 cr and you offer presumptive income to tax, then you need to continue with the same position for next five years (unless the turnover again exceeds Rs 2 cr)

2. Since you have not filed for AY 2017-18, whatever you do for AY 2018-19 (if the turnover is below 2 cr) needs to be continued for next 5 years. What you did in AY 2016-17 is not relevant as the amendment to 44AD was applicable starting AY 2017-18
 
#5
- if your turnover is below 2 cr and you offer presumptive income to tax, then you need to continue with the same position for next five years (unless the turnover again exceeds Rs 2 cr)
last query on this part-
in 44AD,if offering 6% of 80-90Lakhs turnover is not possible,can we choose audit though turnover is below 2Cr mark?

-wa
 
#6
Nikhil Ji,
Do we add Equity Intraday Turnover and Future Turnover?
EQ Turnover is 3.95Lakhs and Future Turnover is 2.66Lakhs(NO option trading done)..so Total Turnover is 3.95+2.66=6.61Lakhs??

-wa
 

TraderGYO

Well-Known Member
#9
last query on this part-
in 44AD,if offering 6% of 80-90Lakhs turnover is not possible,can we choose audit though turnover is below 2Cr mark?

-wa
Here is a question, is audit required for the people with income bellow 2.5lk per year with the same condition ",if offering 6% of 80-90Lakhs turnover is not possible,can we choose audit though turnover is below 2Cr mark"
 

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