44ad

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Akhilesh Chokhani (Querist)
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24 March 2012 I have a proprietorship firm for AY 2011-12 i showed a profit of 150,000 i am maintaing all books of accounts. but my turnover was 28 lakhs so no audit was done. hence i have to assume income as 8% of my turnover ie 232000 (approx). MY tax consultant say to increase the clsoing stock so that in my books that profit is reflected which is coming U/s 44AD. but my point is that we dont need to alter the p/l or B/s.
any suggestion or point?

CA MANOJ GUPTA

CA MANOJ GUPTA (Expert)
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24 March 2012 U CAN OPT TO DECLARE PROFITS LOWER THAN THAT DEEMED UNDER SECTION 44AD AND GET THE ACCOUNTS AUDITED
THE ADVISE BY UR TAX CONSULTANT TO INCREASE CL STOCK VALUE IS WRONG
CA MANOJ GUPTA
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