15 February 2011
Builder can avail the benefit of Sec 44AD & can file the return by showing 8% profit of the total gross receipt . Total gross receipts means sale value of flat sold. pl. guide!
15 February 2011
Eligible assessee for this purpose is an individual, a HUF or a partnership firm ( not being a LLP.
Eligible business is any business escept the business of plying, hiring or leasing goods carriages reffered to in sec. 44AE of the Income-tax Act 1961.
16 February 2011
Q. Builder can avail the benefit of Sec 44AD & can file the return by showing 8% profit of the total gross receipt . Total gross receipts means sale value of flat sold. pl. guide!
Ans. Gross receipts includes the amount paid to the builder or payable to the builder in the previous year.
Builders generally receive booking amount in advance. So you have to take actual receipts during the year as Gross receipts, whether flat has been sold or not.
Similarly if any amount is payable by the customer to the builder, take for only those customers amount receivable, to whom the flat has been sold but part -payment is yet receivable.
17 February 2011
To Mr. Paras Bafna, thanks sir! but i have not got the meaning of last para- similarly if any amount is payable......Pl. clarify in detail....& also clarify the tax treatment for advance received at the time of booking & also for remaining receivable amount$
19 February 2011
1. Booking amount will be treated as the part of Gross Receipt. 2. Without receiving full amount , in case possession has been given to customer, then the balance amount becomes amount payable by the customer to the assessee.
It can also be treated as the part of gross receipt.
The phrase "amount paid or payable to the assessee" makes it obligatory on the part of the assessee to consider as the part of the gross receipts as I have mentioned in the last para of my earlier reply.
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