Hello i do business and report profit in 44AD for the past 2 years and will be doing so this year also , under the said section profit should be more than 6% and in my case it is , now last year i also did trading in FnO and incurred net loss , i read everywhere that FnO is included in 44AD , so does that mean any FnO transactions will be automatically counted in 44AD and the turnovers of both fno and my other business will be combined and 6% of the combined turnover should be the profit which i should have to avoid any audit? I’m confused.
Hey @Rohan_Sharma
F&O trading is eligible to be reported under Section 44AD. However, since you have incurred a net loss, it’s more appropriate to report it under the regular provisions of the Income Tax Act. Additionally, you can set off the F&O loss against income from your other business activities.
Hope this helps!