44 ad

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

26 December 2014 Friends,

Please help me in following situation.

I am finalizing one of my individual clients.

Her business income ie. profit is 48000/- and Turnovet of Sales is Rs 350000/-

I want to show it under 44 AD and claim only 8% as profit ie approx Rs 28000/-.

Please suggest me wheather I can do so.??

Rupesh Jain

Rupesh Jain (Expert)
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26 December 2014 YES HE CAN CLIAM THE 44AD RPFOIT @8% OF MORE

CA Kumar Mukesh

CA Kumar Mukesh (Expert)
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26 December 2014 The Section 44AD, prescribed only minimum 8% of sales required to be disclosed as profit, it does impose any restriction on higher disclosure of profit.

In your case, profit amounts 48,000/- only i.e only 13.7 %, it is reasonable profit and can be disclosed

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Querist : Anonymous

Querist : Anonymous (Querist)

27 December 2014 Thank you.
but if i want to discose 8% profit then can I?

CA Kumar Mukesh

CA Kumar Mukesh (Expert)
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27 December 2014 Yes you can opt to go with 8% under 44AD