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% related to no case accounts

30 May 2022

Is there any percentage of income to be shown in no accounts case under 44AA if turnover is less than 25 lakhs and income less than 2.5 lakhs?

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4 Replies

Kev Men (788 Points)
Replied 30 May 2022

There is no such percentage requirement. However it is advisable to show atleast the profit margin/rate which is generally in the business/profession the assessee is in.

The income tax as per sec 44ad atleast expects 8% of turnover in business and 50% in profession as per 44ada. This is just for information.

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CA Rashmi Gandhi (Chartered Accountant) (86308 Points)
Replied 30 May 2022

You need to show minimum 8% income in no account case. If your cash transactions are less than 5% of total transactions then you can declare minimum 6% income

rama krishnan (12234 Points)
Replied 31 May 2022

There's no such requirement, when your total sales or gross receipts doesn't exceed 1 cr. if it exceeds 1 cr and less than 2 crores then either you have to audit your books or declare 8% of turnover as your total income.

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