U/s 44ad

This query is : Resolved

chetan (Querist)
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04 July 2014 hello sir one of my client biz. is embroidery hand work and total receipt of Rs1060000 in bank a/c out of which Rs 600000 cheque he has deposited given by his trader but actually he has not done any work for 6 lacs and given them back these rupees in the different cheque and different name as per his trader direction whether we have to consider whole Rs1060000 as receipt or only 440000 as receipt u/s 44ad????

Rupesh Jain

Rupesh Jain (Expert)
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04 July 2014 you are doing the trading then you can declare profit u/s 44Ad @ 8% of sales.

and amount received you have to show as sales or as a loan received from the person ,. show as unsecured loan in balance sheet.