Turnover = 100000
Book Profit = 12000
I want to show my income u/s 44AD
So which income will be part of Business/Profession-12000 or 8000(100000*8%) & why??
Please reply as soon as possible
Hitesh Arora (Article) (86 Points)
17 March 2016Turnover = 100000
Book Profit = 12000
I want to show my income u/s 44AD
So which income will be part of Business/Profession-12000 or 8000(100000*8%) & why??
Please reply as soon as possible
furquan ahmad
(Article Assistant)
(129 Points)
Replied 17 March 2016
8000, because it is beneficial for us(tax benefit 1200)
Swami Ayyappa Nuli
(TAX ADVISOR & CONSULTANT AT G.S.T SUVIDHA CENTER)
(1372 Points)
Replied 17 March 2016
Generally, To relieve assessee from Maintenance of Books of account and easeline assessment process, Section 44AD is introduced which says- Offer 8% or More as Presumptive Income. Presumptive means: It is presumed by IT Dept, that approxiamately minimum 8% of Turnover would be Income of assessee. So if such presumption is wrong i.e if your profit is more than 8% of Total Turnover then it is your responsibility to show such higher percentage as Income u/s.44AD. If you contend that my Income is below 8% then offer such Income as Normal business Income and such Income exceed Basic exemptionl limit then you have to maintain books of accoutn u/s.44AA.
CA Neha Gupta
(Managing Partner LNG & Associates)
(1839 Points)
Replied 17 March 2016
Swami Ayyappa Nuli
(TAX ADVISOR & CONSULTANT AT G.S.T SUVIDHA CENTER)
(1372 Points)
Replied 17 March 2016
Agree with CA.Neha Guptha
furquan ahmad
(Article Assistant)
(129 Points)
Replied 17 March 2016
if u claim ur income is below 8%. You will liable to tax audit
Swami Ayyappa Nuli
(TAX ADVISOR & CONSULTANT AT G.S.T SUVIDHA CENTER)
(1372 Points)
Replied 17 March 2016
Claiming below 8% alone does not case obligation to carry Tax audit u/s.44AB. Two things must be considered. 1.Offer less than 8% as Presumptive Income AND 2. Your income after considering all heads exceeds Basic Exemption Limit i.e Maximum Amount Not Chargable to Tax. Then you are liable for Both Tax audit u/s.44AB and Maintenance of Books of accounts u/s.44AA. But if you are firm, In most of the cases, you are subject to tax audit u/s.44AB as Maximum amount not chargable to tax for Firm is "NIL"
kaustubh
(B.Com)
(32 Points)
Replied 18 March 2016
Swami Ayyappa Nuli
(TAX ADVISOR & CONSULTANT AT G.S.T SUVIDHA CENTER)
(1372 Points)
Replied 18 March 2016
Obviously you are correct and understanding levels are good. This is good intention. If you are earning more than Eight % then offer such higher percentage as Presumptive Income. Same words you will found at act also.
LIVE Course on Foreign Exchange Management Act (FEMA)(with recording)
LIVE Course on Foreign Exchange Management Act (FEMA)(without recording)