Me, my father and my mother, we all three are professionals and provide consultancy in various laws.
My fathers HUF bank account has been created since last 1 year. There were no transactions untill now. but March 2013 my father has deposited almost Rs.2,00,000/- in cash in installments of 45,000/-, 48,000/- and so on.
Now my question is that I want to show Rs. 2,00,000/- as turnover/gross receipts of HUF and 10% of Rs.2,00,000/- i.e Rs.20,000/- as business income of HUF and file ITR-4S.
Since there are no provisions to maintain any books of accounts, I feel that I can go ahead with this. But I seek an expert opinion from your side.
Shall I go ahead with this transaction and line of action ?
I would Like to know that all 3 of us i.e me, my father and my mother are professionals in personal capacity. So, HUF of my father can show business income on paper without having actual business in order to take taxation benefit of section 44AD. By this I can save some tax.
CAclubindia
