my brother wants to pay income tax from this assessment year 15-16. the query is he is having a electrical shop business which ITR should be used and what all documents are necessary to be prepared like p&l, balance sheet.
20 January 2015
If the Turnover is less than 1 crore , 8% of turnover can be shown as profit and pay tax accordingly. But you cannot claim any expenses in running the business. You can also show a higher income. It is not necessary to maintain books of accounts. ITR 4s will be applicable. If You think , if expenses including depreciation are claimed profit would have been below 8%, then that profit can be shown in ITR 4. But Audit is compulsory.
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