Sec 44ad

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

10 January 2014 hi My friend have proprietorship firm trading of poultry feed materials march-13
Turnover is 34 Lacks Profit is 55000/- and Salary income is 1.23 lacks he filed is own in ITR-4 and he is not paid income tax
i know this is wrong he is covered under sec 44 ad he have to calculate 8% of gross receipts total income is 395000 and he can claim under sec 80c is 25000/-lic school fee
net income is 370000 and tax is 17510/-inc cess but asked any option is there to reduce the tax please help him

CA TSR

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10 January 2014 If the income from trading operations is really 55000 then go for 44AB audit and file 3CD with present date. Then your total income returned is 55000+123000=178000 - 25000=153000 then there is no need to pay income tax to IT department. Only expenses to your friend is audit fees (4000) + DSC (300) = 4300 is total expenditure instead of Rs. 17510/- payable to government.

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Querist : Anonymous

Querist : Anonymous (Querist)

11 January 2014 Thank you sir for replay
if he file present date
any late filing penalty is applicable or not

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CA TSR

CA TSR (Expert)
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12 January 2014 Due to delay in filing of Form 3cd the department may or may not be levy penalty upto 10,000/-. As per act it is mandatory, as per my knowledge it is not yet levied in my surrounding jurisdictional areas.

Querist : Anonymous

Querist : Anonymous (Querist)

12 January 2014 Thank you sir he is filed ITR4 in 18th June 2013 but it is not processed and my friend thinking to wait for until the process
or file immediately please inform me