Comment on Business Line: Read Section 44AD when filing return
commented on
04 Aug 2013, 02:30 PM
Hello Zerodha,
I would still suggest that salaried individuals do not file ITR-4 and use ITR-2 instead and report F&O income under capital gains.
http://money.outlookindia.com/article.aspx?286519
The article I have quoted still maintains that no audit is required for turnover < Rs.1CR
Your thoughts? Is there a definitive mandate from IT authorities that all F&O activity has to be reported under business income or are we just speculating. Anyway most directives in India are open ended and subject to interpretation and the bureaucrats will not waste time exploiting these conditions. Time for brokerages to get together and fight for rights of the individual who is harassed by these illogical rules.
Disclaimer: I have never traded F&O segment.
P.S: I was looking at opening an account with zerodha for F&O trades. Now undecided as I never have visited a CA and never would like to in the future – Not if I can help it.
– Anand