Regarding ITR business income
This query is : Resolved
24 September 2022
A person has shown 16 lakh turnover and Rs.4 lakh as business income u/s 44ad. In real he has no income from business. what are the implications he can face?
24 September 2022
None..
29 September 2022
why what is the reason? i just want to know for knowledge
29 September 2022
ITD cannot ask for the proof of profit margin (provided it is declared over and above specified limit), when income declared u/s. 44AD of the act...
30 September 2022
Ok...but cash can not be received over and above 2 lakhs and in bank there is nothing...in future ITD can raise a question how sale amount from debtors is recovered? Although profit is shown below taxable limit and hence no tax whether justification of recovery of sale amount can be asked?
30 September 2022
In the said case aggregate income is above taxable limit. ITO has right to ask for justification of sales figure. & as such the recovery should be through banking mode, unless its cash sales or below the specified limit.
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07 October 2022
Yes sir exactly this is my point that in future query can be raised...so i advised my client not to show such a huge sale if nothing is there..am i right in my way?
07 October 2022
Correct. Whatever is real, that needs to be declared, and nothing fabricated...
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