44 af

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

24 May 2010 Hi,
I am in a retail trade and if I file Return for the FY 2010-2011 under section 44 af with the turnover of Rs 15 lac and profit at @ 11%=1,65000RS, do I have to maintain any books of accounts.The Turnover for the last 3 years has been on an average below 15 lac.....

Now can I claim deduction under Section 80 C(Home loan principal repayment.LIC Premiums etc) and under section 24(Home Loan Interest Payment)

For How long I will have to keep the books of Accounts of previous years.Can ITO pick ITRS of previous years say after 5 years
THX IN ADVANCE

daya shankar singh

daya shankar singh (Expert)
Follow

24 May 2010 As per 44AF, an assessee engaged in retail trade in any goods or merchandise, a sum equal to five per cent of the total turnover in the previous year on account of such business or, as the case may be, a sum higher than the aforesaid sum as declared by the assessee in his return of income shall be deemed to be the profits and gains of such business chargeable to tax under the head “Profits and gains of business or profession”

You satisfy the condition and accordingly not require to maintain the books of account and get his account audited

Message likes : 1 times

CA. BIJENDER KR. BANSAL

CA. BIJENDER KR. BANSAL (Expert)
Follow

25 May 2010 agreed,

your turnover is less than 40 Lacs
and your profit over 5% , hence you need not to maintain books of accounts.

Message likes : 1 times

Upgrade to CAclubindia Pro. Subscribe Now!

Querist : Anonymous

Querist : Anonymous (Querist)

25 May 2010 THX.By the way can ITO ask for the Sales or cash Reciepts at any point of time.Because its very difficult to maintain small vouchers of sales and purchsae.Thx in Adv.

daya shankar singh

daya shankar singh (Expert)
Follow

26 May 2010 ITO can't demand for the Sales or cash Reciepts at any point of time, if you show your income 5% or more than 5% of total turnover as per sec 44AF and pay tax accordingly

daya shankar singh

daya shankar singh (Expert)
Follow

26 May 2010 ITO can't demand for the Sales or cash Reciepts at any point of time, if you show your income 5% or more than 5% of total turnover as per sec 44AF and pay tax accordingly

Message likes : 1 times

CA. BIJENDER KR. BANSAL

CA. BIJENDER KR. BANSAL (Expert)
Follow

26 May 2010 AGREED , IF YOU CLAIM INCOME LESS THAN 5% THEN ITO MAY DEMAND. IN YOUR CASE , ITO CAN'T DEMAND.

Message likes : 1 times

CMA Arif Farooqui

CMA Arif Farooqui (Expert)
Follow

27 May 2010 agreed with experts

Message likes : 1 times

Upgrade to CAclubindia Pro. Subscribe Now!

Querist : Anonymous

Querist : Anonymous (Querist)

31 May 2010
Author : Anonymous
( Author )
24 May 2010
Hi,
I am in a retail trade and if I file Return for the FY 2010-2011 under section 44 af with the turnover of Rs 15 lac and profit at 11% = 1 65000

Now can I claim deduction under Section 80 C(Home loan principal repayment.LIC Premiums etc) and under section 24(Home Loan Interest Payment)

For How long I will have to keep the books of Accounts of previous years.Can ITO pick ITRS of previous years say after 5 years
THX IN ADVANCE