08 April 2009
one of my client is in business of civil construction.During the year his receipt was 2500000/- less TDS.Howver the project got closed in between and expenses incurred were only 200000/-.In this should he declare higher income or 8% of 2500000/- is fine.Will there be any problem in assessment.
08 April 2009
Due to the closure of the contract what amount you have refunded. The same should be reduced from your 2500000 - 200000 - refund amount. Net is income to you.
You have to choose taking into account all the transactions he has made during that year. You cannot pay tax transaction wise.
If he do not have much receipts then get his accounts audited and do not choose 44AD it will reduce the tax burden.
CAclubindia
