Hi, I have a few doubts regarding ITR filing. Could someone please help me with the following?
1. Professional Income vs. GST Turnover (Section 44ADA)
I provide export of services and have been filing GST returns as a sole proprietor. In August 2024, I also earned income from consultancy services, for which I collected and deposited 18% GST (with TDS deducted by the client).
On the AIS portal, I can see two entries:
- One for business income
- Another for GST turnover (which reflects the cumulative amount of consultancy income plus my regular export of services income)
Now, I want to opt for the presumptive scheme under Section 44ADA. My confusion is:
- Should I report the GST turnover as professional income and then show the consultancy income separately as business income? (This may cause double taxation.)
- Or should I report only the GST turnover amount as professional income? (In that case, wouldn’t it create a mismatch, since AIS shows business income separately? Could this raise a red flag?)
To clarify:
- My GST turnover = Total professional income (export of services at 0% GST + consultancy income at 18% GST).
- However, in AIS, consultancy income is separately shown as “business income,” and the same amount is also included in the GST turnover figure.
So while filing ITR under Section 44ADA, should I:
- Report only the total professional income (export + consultancy) under “Professional Income,” or
- Report the consultancy portion again under “Business Income,” even though it is already part of the GST turnover?
My objective is to avoid double reporting while also ensuring there are no mismatch issues with AIS.
2. Claiming Expenses against Capital Gains
Can I claim STT charges and other debits (such as brokerage, exchange fees, etc.) as expenses under capital gains? If yes, what is the correct way to report them?
3. F&O Income and Dividend Reporting
- For F&O income, how should the balance sheet be presented in the ITR?
- The dividend income reflected in AIS is different from what is shown in my broker’s report. Which one should I rely on while filing?