Income on presumptive basis

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Querist : Anonymous

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Querist : Anonymous (Querist)
27 April 2012 my client has showing purchase of goods at 300 and sale at 600 (trading business) he wants to opt for 44AD. Turnover below 60lacs,
is he require to show more then 8% PGBP,
if he shows 8% then how to justify AO?

please its urgent help
thanks in advance

28 April 2012 U/s 44Ad prescribed the minimum amount of profit shown by assessee. If assessee has income more than 8%, then he should disclose more income.

In case of scrutiny, the AO can assesse the greater income and accordingly tax the same.

29 April 2012 agree with gupta sir....


01 May 2012 You can show income @8% of your gross T.O. and claims to have not maintained books of accounts, unless you claim to have earned higher than prescribed u/s. 44AD.

By the introduction of words Claimed to have been earned in section 44AD(1), the legislature shows his intention to accept specified income as returned income even if higher sum is earned by eligible assessee unless it is claimed by assessee in his Income Tax Return.

unproportionate saving/investment out of excess earning may put in trouble.

09 May 2012 No problem he can do it till the turnover does not exceed the minimum limit



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