@ Which percentage use
MPR Sanjay Kumar (3118 Points)
16 July 2022what is 8% 6% 5% of profit determine could you please give me of these three examples??
how can I determine my profit threshold limit??
MPR Sanjay Kumar (3118 Points)
16 July 2022
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(177877 Points)
Replied 16 July 2022
Say turnover is X.
of which cash turnover is XC
& turnover by banking channel is XB; So total turnover = [XB+XC]
So the minimum profit as per sec. 44AD that is arrived at is 6%(XB)+8%(XC).
Assessee can declare more profit than above minimum stipulated.
5% comes under sec. 44AB, which if you require can be explained, but its not connected with sec. 44AD of IT act.