22 July 2011
sir if my net profit as per p&l a/c 4.3% then can i liable todo audit as per a.y.11-12 provision.i am wholesaler then my net profit is never above8%.if i accept u/s44ad then i show 8% net profit of sales.but my books show 4.3% net profit.what i do?
22 July 2011
Profit can easily be increased or decreased- in the books of account provided the person maintaining the books of account is a good "accountant".
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If you are a man of principal, do not disturb your books of account.
Without disturbing your books, you can claim that your profit is 8% of turnover. That will be shown in computation only.
By doing so , you may have to pay tax, but your capital will not increase to the full amount of taxed profits.
22 July 2011
If turnover is less than Rs.60/- lacs, in the absence of 8% profit, tax audit under section 44AB should be sought for as per section 44AD(5) of the Income tax Act,1961.
22 July 2011
If turnover is less than 8% then you have the following options:
1. As told by Mr. Paras Bafna, change your books to show at least 8% profit.
2. Keep your books as it is but For the purpose of income tax, compute profit as 8% of turnover, pay tax and stay tension free.
3. Get your books of accounts audited by a CA and file your return with actual profits.
Querist :
Anonymous
Querist :
Anonymous
(Querist)
23 July 2011
thanks sir. its very imp knowledge for me sir.one more query is 1.if my net profit above 8% (turnover below 60lakh) then which ITR i file, ITR4 Or ITR4S for a.y.11-12. 2.if i mainten books then i file ITR4 without take u/s44ad.