44AF

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

11 July 2011 Actually my client is doing retail business in Uttar Pradesh he is operating Bank Account but all the transaction is in cash,

1) Purchases of Rs. 2600000.00
2) Sales of Rs. 2800000.00

Can we file Income Tax return under Section 44AF

is there applicable U/s.40A(3)

Kindly Advise

U S Sharma

U S Sharma (Expert)
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12 July 2011 44AF is related to transport only, 44AD applicable

how he can make such turnover in pure cash? does not not carry any other tax liability other than incometax? if yes follow the records and returns of the other tax liability sides to ascertain the correct output.

hshivakumar

hshivakumar (Expert)
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12 July 2011 if turnover below the specified limit 40A(3) is not applicable.

You can also allowed to file in 44AF.

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C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
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12 July 2011 You can avail the benefit of 44AF and file the return. In 44AF all expenses are deemed to have been allowed and only the profit is to be considered and none of the other provisions shall be applicable. The provision of 40A(3) shall not apply even if the payment has been made in Cash

CA. Krishna K Neeraj

CA. Krishna K Neeraj (Expert)
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14 July 2011 First of all, Section 44AF is not applicable from Assessment Year 2011-12. You can file your return U/s 44AD. Section 40A(3) is not applicable in case you opt to disclose your income U/s 44AD.

If you have to file ITR for A/Y 2010-11, you can file the same under section 44AF. Section 40A(3) is not applicable in case you opt to disclose your income U/s 44AF for Assessment Year 2010-11.