18 November 2011
My uncle has retail business [Kirana shop] frm last 2 yrs. He has nt filed his returns. So wht is d procedure n under which sec n wht all documents r reqd for it return n related his shop? he has no other income. Evn he has 2 purchase a car of abt 6lakhs on loan. dealer is asking 4 it returns of 2yrs. Is there any criteria dat return shd be with this much amt of tax ? can he buy car in cash?
20 November 2011
Your uncle can file his return of income if his income is above taxable minimum for that financial year. If he has not maintained any books of accounts, a minimum of 8% of his turnover shall be declared as Net Profit and shall be paid tax accordingly after he claiming the eligible deductions under chapter VIA. Your uncle can buy car in cash or through cheque, but provided his source of income is explainable and tax paid on it.
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