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6 criteria of 44AD
what if turnover is 1.5 cr and if suppose out of that amount 70 to 80 lakhs is received through banking channel can we show that sale in 6% profit
Replies (8)
Yes you can show 6% profit on banking channel turnover
Is there any provision regarding 5% in this case?
No I think there is no 5% case
Under section 44AD there is two rate of deemed profit 6% if receipt through banking channel and 8% in rest cases.
There is 5% provision in case turnover in excess of 2 crore and less than 5 crore then no need to get accounts audited if the receipt and payment is not in excess of 5% of total receipt.
There is 5% provision in case turnover in excess of 2 crore and less than 5 crore then no need to get accounts audited if the receipt and payment is not in excess of 5% of total receipt.
Thanks for the information
If your receipt and payment in cash is less than 5% of total receipt and payment during the year, than not required to get books of accounts audited up to limit of Rs. 10Cr.
That limit is only for audit purpose ? and if out of 100% sale 60% is received in bank so that will be ok na or entire 100% should be through bank for 6% case .....i m confused regarding this point
Yes, that 5% limit is for audit purpose..
if your 60% sale in bank and other in cash than ..to u audit limit of Rs. 2 cr is applicable.
you can show 6% on sale amount received in bank and 8% in cash as a profit u/s 44AD
if your 60% sale in bank and other in cash than ..to u audit limit of Rs. 2 cr is applicable.
you can show 6% on sale amount received in bank and 8% in cash as a profit u/s 44AD
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