Hi
Can I have presumptive taxation under for income generated from f&o trading if my turnover is less than 2 crore.
What are the cases where I cannot use this.
lets take a case where total profit is 1.5 cr and total loss is -40cr in a financial year making turnover as 1.9cr and net profit as 1.1cr.
In this case if I use presumptive taxation there will be huge tax save(6% of 1.9cr → 11 lakh). Is there any clause which say I cannot use this in such cases.
Hey @Nishant_Sinha,
Presumptive taxation scheme was introduced for those businesses/professionals who are unable to maintain books of accounts and thus can report a fixed percentage of their turnover/revenue as profits and pay taxes on the same. However, in case of trading income, where all transactions are digital and the books can be easily maintained, it is recommended to report as normal business income. Moreover, if you opt for the presumptive taxation scheme, 6% of your profits or actual profits, whichever is higher, need to be reported.
On this topic I have one query. Let’s say I have loss in F&O, what are the gains with which I can offset it with ?
For example, let’s say I carry forward the losses from F&O to next year but I do not trade in F&O next year onwards, what other income can be used to offset the losses ?
Hi @enigma,
There can be two cases,
One, you have losses from F&O trading in the current FY.
In this case, these can be set off against any other income except for income from salary.
Two, you have carry-forward losses from F&O trading from the previous FY.
In this case, these losses can only be set off against any other business income only.
Hope this clarifies.
One, you have losses from F&O trading in the current FY.
In this case, these can be set off against any other income except for income from salary.
Does this mean I can set off the loss from Short Term Capital Gains ?
If these are current-year losses then yes, F&O losses can be set-off against both short-term and long-term gains.
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Thank you. Clarifies the doubt