27 July 2010
Sec 44AF of income tax act is applicable only to retail trades and the section specifies that the income of the person is deemed to be 5% of total turnover or any other rate declared by the person which ever is higher and this sec is not applicable if the turnover exceeds 40 lakh. assesse cant claim expenditure u/s 30 to 38
27 July 2010
assessee is free to declare income more than 5% of total turnover. when income is shown on presumptive basis under section 44AF further deduction of expenses under referred section is not deductible. if it is partnership firm salary and interest paid to partners as per deed shall be deductible from the income thus declared.
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