Computation of Profit for Retail Business
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
24 April 2011
A prop. firm has turnover less than 60,00,000 in financial year 2010-11 (i.e. accounts are not auditable).
As per income tax act, what is the flat minimum rate of profit at which sums will be chargable under head "PGBP"? what if assessee shows profit below this rate or higher than this rate?
Please give reference of section & rules or ciculars etc. (for financial year 2010-2011)
If according to sec 44AD the rate is 8% then how sec 44AF differs from this section??
As per income tax act, what is the flat minimum rate of profit at which sums will be chargable under head "PGBP"? what if assessee shows profit below this rate or higher than this rate?
Please give reference of section & rules or ciculars etc. (for financial year 2010-2011)
If according to sec 44AD the rate is 8% then how sec 44AF differs from this section??
24 April 2011
Please refer to Section 44 AD.
As per the section, if the assessee shows profit from business less than 8% of his turnover which is less than Rs.60 lacs then he will have to get his accounts audited in the manner prescribed under section 44 AB.
However he can show his profit higher than 8% of his turnover.
Limit of the turnover u/s. 44AD is Rs. 60 lacs.
The Section 44AD is applicable to profits from business & not from profit from profession.
If the assessee avails the benefit of section 44AD, then he cannot claim deductions under section 30 to 38. However he will be able to take the deductions u/s. 80C & 80D.
As per the section, if the assessee shows profit from business less than 8% of his turnover which is less than Rs.60 lacs then he will have to get his accounts audited in the manner prescribed under section 44 AB.
However he can show his profit higher than 8% of his turnover.
Limit of the turnover u/s. 44AD is Rs. 60 lacs.
The Section 44AD is applicable to profits from business & not from profit from profession.
If the assessee avails the benefit of section 44AD, then he cannot claim deductions under section 30 to 38. However he will be able to take the deductions u/s. 80C & 80D.
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24 April 2011
The amended section 44AD is applicable from AY 11-12 whereas section 44AF will not be operative from AT 11-12.
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