18 February 2010
if i assume tht groos profit of a person from bussiness on 31 st march 2010 RS. 161000 and the indirect expenditures of his business RS. 40000 (indirect exp. includes rent of shop,and salary to labour,periodicle exp. etc.) so his net profit comes RS. 121000. details of indirect exp. annual rent of shop RS. 18000 annual wages to labour RS. 18000 anuual periodicle exp. RS. 4000
he is not have any proof/supporting of all indirect exp.... now i want to know tht is he liable to pay tax??????assume he is not eligible for any deductions under any sec,and he is not have any income in rest heads of income????
18 February 2010
IT act asks for Self assessment in which assesse has to himself calculate & submit the tax according to the provisons of IT . It also requires that you should maintain books of account i.e vouchers and proof for the expenses and incomes of the business.
So in the given case, such expenses are disallowed and will not be deducted for calulating Net Income and he is liable to Pay Income Tax.
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