Speculative Income and section 44AD - Professionals - Taxation - TIK Share
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Speculative Income and section 44AD

Kamaldeep Singh



I am recently introduced to Speculative business income and it's scenarios when a client who is a side share and derivatives trader approached me...I have read everything about Speculative and non speculative business income and all my fundas are clear now.

I have just one doubt: Speculative business income is no where prohibited to be shown u/s 44AD specifically, but then ITR4S doesn't allows one to show speculative business income. I have been reading online that speculative business can be shown as an eligible business and return be filed declaring 8% of the 'turnover' by adding all positive and negative differences of all transactions.

So, Can one use ITR4 OR 4S and show the turnover under normal business income u/s 44AD and declare 8% on it (since there will be no carry forward of losses so no issues). Itr4 has a seperate column to show speculative business income but then it takes one away from 44AD clause.

Please guide, as the client has an other business also and he files return under 44AD right now, so it becomes a no books case and is preferring to show speculative business also under 44AD.