A person have income from business turnover Rs.2 crore books covers under section 44AB. GP increase 5% as compared to Financial year 2020-21. GP in Financial year 6.7% in 2020-21 and GP in Financial year 2021-22 is 11% Please suggest can we face any problems from IT department.
05 August 2022
If the turnover is up to 2 Crs. with any eligible business, you can declare the income u/s. 44AD of the act, and declare any percentage of profit from 6/8% and above, without maintenance of any books of accounts. No query will be raised.
06 August 2022
In that case you are required to audit your books mandatorily. As per justification given by auditor under notes, the query may not be raised.
08 August 2022
If business turn over is less than 2 crore rupees, eligible assessee engaged in eligible business can seek to be governed under provisions of s.44AD for presumptive taxation at the rate of 6/8%.
Eligible business= any business except business of plying, hiring or leasing goods carriages when turnover thereof is less than 2 crore rupees
Eligible assessee = An individual or HUF or a partnership firm under Indian Partnership Act that has not claimed deductions under s.10A, s.10AA, 10B or 10 BA.
If you satisfy above conditions, you can declare profit at 6/8% without maintaining books. There may be queries however from the department and though you may not be maintaining books of accounts, your bank statement may be asked for.
Author: Advocate Ravish Bhatt Gmail: ravishdbhatt@gmail.com Link to Linkedln Profile: https://bit.ly/3IDGfsU
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