ITR3 – Balance sheet for F&O trading

@Quicko please make clear on property & liabilities to be captured in ITR-3 (Schedule BS) for F&O buying and selling. I’m salaried individual with small F&O buying and selling. As per 44AA, preparation of books of accounts are required if turnover or earnings from enterprise exercise is above a threshold.

I’ve pledged a part of my fairness portfolio (MF/ Shares) to make use of as margin for F&O buying and selling. Whereas P&L report is obtainable from dealer and could be simply replicated in Schedule PL, I’m confused about what all property to be proven in Schedule BS –

Solely associated to buying and selling i.e. pledged securities OR
total private property, together with financial savings accounts, securities and glued property (each moveable and immoveable)

Would all such property be reported at ebook worth/ invested quantity or present worth? Will fastened property be disclosed at depreciated worth?

If all property, together with immoveable property, are required to be disclosed, what can be the remedy for under-construction home and mortgage drawn in direction of it?

As per my understanding, solely buying and selling property i.e. pledged margin ought to be disclosed in schedule BS. And full property and liabilities shall be disclosed in schedule FA if you happen to meet earnings standards. Please right me if in any other case.

@Quicko group, are you able to pls assist with above question

There are two method the place you may file ITR -3 as per my understanding. One at enterprise degree and different one at assesse degree. In case your earnings exceeds 50 lakh threshold standards than you have to file ITR 3 at assesse degree i.e. mentioning all personnel asset ,loans, items and so forth other than enterprise earnings.

I don’t assume that is right. ITR-3 shall be filed at assessee degree solely. Nevertheless, if there may be any enterprise earnings with turnover/ earnings above outlined threshold, stability sheet is required for the enterprise (Schedule BS) as per 44AA. Nevertheless, it needn’t seize property not being utilized in enterprise. Please discover beneath extract from Directions from Earnings Tax web site:

Another exercise not being accounted within the books of proprietary enterprise or career, needn’t be included on this stability sheet

For earnings above Rs.50 lakhs, schedule AL can also be to be crammed. Nevertheless, property already disclosed in schedule BS usually are not required to be reported in schedule AL. Extract from Earnings Tax web site:

Please word that the property and liabilities disclosed within the stability sheet of the proprietary enterprise partially A- BS shouldn’t be required to be reported once more on this Schedule

@Quicko group, are you able to please help with these queries