21 May 2020
An assessee is having turnover in trading activity of Rs. 15 lakhs in financial year 2019-20 and total income is around Rs. 25 lakhs which includes income received from partnership firm as a partner in the form of interest and salary. Whether the assessee can declare profit @8%/6% in respect of trading activity and file the return of income without getting books of accounts audited or Whether the assessee has to get his books of accounts audited as total income exceeds basic exemption limit as said in 44AD(5)? The assessee had declared 8% in past financial year.
21 May 2020
You can declare income under 44 AD FOR trading income of 1500000/ @ 8% or 6%_ rest you rest interst and salary from firm considered taxable income
22 May 2020
first, you have to disclose minimum 8% or 6% profit whereas there is no limit on maximum. So, agree with CA R SEETHARAMAN, yes audit is not applicable on you secondly, as per section 10 (2), the money received as appropriation of profit is not included in your taxable income.
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