F&O Trading profit/loss with 44AD business of goods

[Catanil]

I have been showing business of goods trading in 44AD and now I have F&O trading profit/loss. Can I continue showing goods business under 44AD and whether F&O has to be shown under 44AD separately or normal P&L in ITR 3?

[FCA Adv amit aggarwal]

Notification No. 2/2006 dated 25.01.2006 : CBDT notified recognised stock exchanges for derivative transactions under Section 43(5)(d)

sec 44AD has not specifically prohibited derivative trading

so, if all conditions of 44AD fulfilled, the benefits of presumptive income can be taken.

2. if avail benefits of sec 44AD. so, it is mandatory to mention in 44AD column and ITR 4 (not ITR 3)

AI Summary

Presumptive taxation under section 44AD may apply to F&O trading where conditions are otherwise satisfied. Presumptive taxation under section 44AD was discussed in the context of goods trading and F&O trading. It was stated that section 44AD does not specifically prohibit derivative trading, and that if the conditions of section 44AD are otherwise satisfied, the benefit of presumptive income may be claimed. If the scheme is availed, the income should be shown in the 44AD column and the return filed in ITR 4 rather than ITR 3.