U/S 44AD

This query is : Resolved

satish kumar Chauhan (Querist)
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17 April 2020 Dear sir

My net sale is Rs 55.00 lac
Net profit Rs 5.40 Lac after taking the credit notes issued by suppliers under various sale promotional scheme and cash discount of Rs 3.85 Lac in profit and loss account.

Can i am eligible to file ITR U/s 44AD

Thanks

Eswar Reddy S

Eswar Reddy S (Expert)
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17 April 2020 You may declare 8/6% of turnover as profit if you are eligible for presumptive taxation. Actual profit need not be considered.. You can avail 44AD

RAJA P M

RAJA P M (Expert)
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17 April 2020 @ Mr Satish Kumar., If Your business (& Assessee) is eligible to avail sec 44ad then You can file Your ITR u/s 44AD. But, as per above turn over You must be show the profit 8% (cash receipts) / 6% (Digital receipts, Banking Mode).

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Vikas Tapariya

Vikas Tapariya (Expert)
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19 April 2020 Yes, You can file your income tax return under section 44AD and you may declare profit at-least 8%(on cash sale) and 6% (on other than cash sales) of your turnover if you deal in goods not services.

RAJA P M

RAJA P M (Expert)
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19 April 2020 Sec 44ad can't restrict services. The section also can be avail service sectors except notified professional incomes...

Vikas Tapariya

Vikas Tapariya (Expert)
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19 April 2020 Exactly MR. Raja but as per concern person query i can assume it that he deal in goods but in case he supply any service then i have to know about type of service which he deliver to his client/customer so that`s why i wrote only goods not services

RAJA P M

RAJA P M (Expert)
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19 April 2020 Don't be assume by Yourself/ourselves. If any doubt in query then ask the details to Querist and clarify the same.... Note Amy type services except notified....

Asha Kanta Sharma

Asha Kanta Sharma

(Expert)
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25 May 2020 Section 44AD – Presumptive Scheme to be opted for atleast 5 years:
You stand to loose presumptive tax benefits, if you do not continue them for at least 5 years.

This additional condition has been added by substituting sub section (4) of 44AD which is –

If you are opting for the presumptive scheme, you must-

a. File presumptive scheme for at least 5 years in continuation.

b. If you decide to show and file profits as per regular business (ITR-3) before the end of these 5 years, you will lose presumptive benefits and disallowed from presumptive taxation for the subsequent 5 years.

Please note that 5 years shall be counted starting the year in which you first file usual taxes for such business.

The government is discouraging taxpayers from misusing the scheme and constantly changing their option often. So if you opt for presumptive continue for 5 years and if you want to opt out, you’ll be barred from resuming presumptive for a period of 5 years.

As per the changes in the Budget of 2016, businesses with turnover up to Rs 2 crores can opt for presumptive taxation scheme. Earlier this limit was Rs 1 crore. We’ll quickly list down the features of this scheme-

a. Your turnover must be less than Rs 2 crores.

b. Your NET income shall be considered as 8% of your turnover (net income will be considered 6% in case of digital receipts).

c. You don’t have to maintain accounting records.

d. You don’t have to pay advance tax (from FY 16-17, assessee opting for presumptive taxation has to pay 100% advance tax by 15th March of that particular financial year).

e. You don’t have to get your accounting records audited.

f. You can file your tax return in ITR-4 a much shorter and simpler form than ITR-3.

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satish kumar Chauhan

satish kumar Chauhan (Querist)
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06 June 2020 thanks for suggestion