Presumptive Tax Scheme for FnO Traders. I read online that advance tax needs to be deposited in one Installment ONLY and not necessary to follow the 4 deadline of advance tax. If someone deposits advance tax in more than one installment. Does it makes the person ineligible to opt for Presumptive scheme ?
Is there eligibility based on number of times the advance tax is deposited?
Ans: Presumptive tax scheme and payment of advance tax are two separate issues.
Whether you want presumptive taxation or not depends on how much is your F&O turnover and if audit is not compulsory for you, whether you’re OK with being subjected to audit or not.
Advance Tax payment is only concerned with how you pay the tax that is due to be paid by you.
If you are carrying on F&O trading, you have to get your accounts audited if the turnover exceeds Rs 10 crore (the digital transactions are 95% or more). You can opt for a presumptive taxation scheme when turnover does not exceed Rs 2 crores and declare your taxable income at 6% of the total F&O turnover. Tax audit becomes mandatory if you opt for a presumptive scheme of taxation and declare an income lower than the presumptive income and total taxable income (after including income from other heads) exceeds the maximum amount not chargeable to tax i.e. Rs 2.5 lakh.
Unlike common perceptions, income from F&O Trading is considered a non-speculative business income, taxable at slab rates. If the tax liability of the F&O trader from all sources of income during the financial year exceeds INR 10,000, he/she is liable to pay Advance Tax in four quarterly instalments as per the applicable due date like any other income source.
