One of my client has 39L Sales and interest income in AY 10-11. His Total Taxable income (including interest of 3.5 L) was 370000 after expenses as business income.
I want to ask that wat would be the implication of amendment in section 44AD.
Whether the income would be a) 39L * 8% plus 350000 interest. or
b) (39L plus 3.5L) *8%
Its very urgent as i will have to plan his taxation for current Year.
28 February 2011
If the interest income is chargeable under the head "Income from other sources" than his turnover will be 39L and 8% will be calculated on 39L and Income from other sources will be 3.5L.
But if interest income is also a part of business income hen his gross receipts will be 39L + 3.5L and 8% will be calculated on 42.5L.
CAclubindia
