Taxation under Section 44AD

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Elbin (Querist)
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12 March 2024 If my business is eligible to avail sec 44AD. According to the section, as per turn over I've to show the profit 8% (cash receipts) / 6% (Digital receipts, Banking Mode). But pls. clarify sale payment rec'd part via. Cheque & balance in TDS

Should I show TDS amount in 6% or 8% ?. Kindly explain

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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13 March 2024 Show TDS amount in 6%.

Elbin

Elbin (Querist)
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13 March 2024 @ Seetharaman Thank u Sir for the reply, also clarify the below:

1) Advance payment rec'd via bank channel 5 years before & Bill made in current year. Tax Slab will be 6% or 8% ?

2) Bad Debts, Outstanding payment will come under 8% right ?

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CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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13 March 2024 1 6%.
2 8%.

.....

Nikhil Kaushik

Nikhil Kaushik (Expert)
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13 March 2024 just a correction here. If you are doing accrual basis. the bad debts should either be reduced from turnover. if you are covered under GST, file a proper credit note to reduce your turnover. For unrealised sales, there is no reason to include it under 8% because it has not been received at all at this stage.

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