Income from business

This query is : Resolved

pavana .k. (Querist)
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26 August 2011 An assessee receives income from 2 businesses, one is retail trading and another catering business. He has approximately 24 lakhs of turnover for the f.y.2011-12 in retail business and Rs.60,000/- income from catering business. There are no expenditures in catering business. Whether he can declare 8% of profit in retail business and add the income from catering to this income and file his returns in ITR4 for the a.y.2011-12. Whether he has to get his books of accounts audited? Please give your opinion.

CA. Anoop Gadia

CA. Anoop Gadia (Expert)
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26 August 2011 if you take 8% income on Turnover and your total tax turnover is less than audit limit so no need to audit.

CA Hardik Bunha

CA Hardik Bunha (Expert)
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27 August 2011 hi,
YOU HAVE TO FILE RETURN FORM 4S NOT 4.
YOUR TAXABLE INCOME WILL BE RS. 1,96,800

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CA. Nitin Agrawal

CA. Nitin Agrawal (Expert)
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27 August 2011 Not agree with Mr. Hardik with respect to total income.

Total income is worked out as under:
Business 1 : 24,00000 x 8/100 = Rs 1,92,000
Business 2 : Rs 60,000

Total Income Rs 2,52,000

In Business 2 there is no expenses and whatever earned is income, hence fully taxable.

CA. Anoop Gadia

CA. Anoop Gadia (Expert)
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27 August 2011 no if you taking presumption income basis than gross income is 24,60,000*8% = 196800.00

CA. Anoop Gadia

CA. Anoop Gadia (Expert)
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27 August 2011 So Hardik is right on this.

CA Hardik Bunha

CA Hardik Bunha (Expert)
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28 August 2011 HI MR. NITIN AGRAWAL
FOR YOUR KIND INFORMATION SECTION 44AD IS A ASSESSEE WISE NOT BUSINESS WISE......
NO MATTER HOW MANY BUSINESS U HAVE OPERATED....