As an F&O trader, is it necessary to fill in the assets and liabilities section such as cash balance, bank balance, proprietors capital etc under the business/profession section of Incomes? Or can I leave these sections blank?
F&O Income is treated as Business Income. Thus, if you opt for ITR 3 with books of accounts you have to prepare Balance Sheet, Profit & Loss Statement and enter all the financial details. You can even opt for Presumptive Taxation scheme if you are eligible for. In that case there is no need to prepare any financial statements.
I don’t understand this recommendation of presumptive taxation at all.
What if you’ve incurred losses and can actually set off those losses including expenses with other sources of income such as interest, etc.
Why will I increase my tax burden even more by going for presumptive taxation? Everywhere I go, I find people recommending this presumptive taxation and it just doesn’t make sense!
Presumptive taxation scheme is recommended only when your profits are more than or equal to 6% of Turnover and Turnover is not exceeding 2 crore. Thus, if you have losses or profits less than 6% of Turnover, the scheme is not recommended.