Including dividend in Turnover calculation u/s 44AD

Income Tax Income from Business or Profession
1

Hi,

My business is of share trading / short term investing / long term investing / F&O / intraday.

I have opted for presumptive taxation scheme u/s 44AD and I have filed ITR 4 for AY 25-26 today. I have considered the proceeds from all shares sold in the year as “Turnover”. Of course I have done suitable adjustments for F&O and intraday trades to arrive at the “Turnover” figure as per the tax rules. I have thus derived business income @ 6% of the above arrived turnover figure.

I have shown Dividend received from all shares under “Income from other sources.”

I suddenly struck me that the dividends have been received due to my business activity.

So should I instead include dividend in my turnover calculation and calculate business income accordingly?

If yes, can I file a revised return quickly before my return is processed ?

This is my 1st query @ Quicko and I would highly appreciate a quick response.

Thanks in advance for the valuable help.

2

Hello @rahulroongta

Dividend income should not be included in your turnover, even if it comes from shares used in your trading business. It’s considered a separate type of income and should be shown under “Income from Other Sources” only. Dividend income is not included in the turnover and business income calculation for presumptive taxation under 44AD.

Hope this helps!!

1 Like
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Thank you so much Priyanshu for such a quick response. This was really helpful :grinning_face: