15 March 2020
Hi, I'm Arunoday, after quitting my job, i started my distribution business in November 2019. I want to ask if i have to pay tax for FY 2019-20 based on below transaction:
Sales: 2,25,00,000/- (Payment received 50,00,000, balance payment will come in next FY) Purchases: 2,00,00,000/- (Payment made 70,00,000, balance payment will be done in next FY) Other Expenses: 7,00,000/- (Warehouse rent, transport, salary, misc.) Gross profit 18,00,000/-
Can you please guide if i have to pay tax on accrued income? most of the payments i will receive in next FY.
15 March 2020
Yes you have to pay tax based on accrued income Before filing the return you will receive the payment so pay tax based on accrued income.
CAclubindia
