Originally posted by : CMA. Sanjay Gupta | ||
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Very Useful Post Navin Ji....Keep Sharing... |
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Vikas Gupta
(CHARTERED ACCOUNTANT)
(16295 Points)
Replied 20 July 2011
Originally posted by : CMA. Sanjay Gupta | ||
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Very Useful Post Navin Ji....Keep Sharing... |
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CA SURENDRA KUMAR RAKHECHA
(Practising CA at Surat)
(26263 Points)
Replied 20 July 2011
I wish to clarify the following point :
4. No separate deduction will be allowable u/s. 30 to 38 .......OK
and
no disallowance will be made u/s. 40 to 43D. This means that even if assessee does not deduct TDS, or makes cash payment exceeding prescribed limit u/s. 40A(3), or does not discharge statutory dues u/s. 43B, or makes illegal expenses under Expln. to section 37; no disallowance will be made for same.
.
The above is "wonderfully" correct.
.
Such friendly provisions were never before for small assessees.
CA SURENDRA KUMAR RAKHECHA
(Practising CA at Surat)
(26263 Points)
Replied 20 July 2011
Planning Hints :
.
1. The assessee should keep a "SCORECARD" of SALES every month.
.
2. The moment sale goes Rs.2 Lacs or above per month; the assessee should take care of 80C deductions. When Sales is Rs.24 Lacs per annum, presumptive profit at 8% is Rs.1,92,000/-
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3. When sale reaches Rs. 40 Lacs, the assessee's presumptive profit will be 3,20,000/- where tax is 14,000/- for current year. He may plan for more deductions u/s 80C.
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4. Assets which are nature of high rate of depreciation involving high amount; should be avoided to take under such firms if it is possible.
.
5. Very Important :
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When sale crosses 50 lacs; the assessee should appoint one accountant to maintain books of account to avoid heavy taxation.
.
If books of account are not maintained; 8% profit is Rs.4 Lacs hence tax is Rs.22,000/-. Hence it is advisable to small assessees to be aware of such provisions.
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This is important because generally small businessmen will not think to maintain regular books of account.
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But when sale crosses Rs. 50 lacs or 60 lacs; then they are required to get their books of account audited either to save taxes by showing lesser income or when it becomes compulsory to get it audited.
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Assessees who have 3 members in his family ( we can't say it a family if 3 members are not there ) and having sale upto Rs. 1.00 crore can plan to open 3 family firms and avoid unnecessary maintenance of books. Also they would be relieved from various typical provisions of Income-Tax.
Ninad Pandit
(CA Final Student)
(254 Points)
Replied 20 July 2011
Dear CA Navin Jain Sir,
I want clarification about point no.2 which you have mentioned.
The assessee has to get his accounts audited as soon as his turnover crosses 60 Lakhs and he cannot avail the benifit of 44AD.
Kindly clarify.
CA Navin Jain
(MANAGER (FINANCE & ACCOUNTS))
(11768 Points)
Replied 21 July 2011
If trunover is exceed to Rs. 60 Lacs then provision of Sec 44AB is applicable.
sushil kumar
( CA Final-Audit Assistant)
(528 Points)
Replied 21 July 2011
Thank you very much sir...
CH.MARUTHI RAM
(TAX CONSULTANT)
(69 Points)
Replied 21 July 2011
GOOD EVNG NAVINJI,
THANKING U FOR SHARING WITH US ABOUT U/S 44AD,
IN THIS CONNECTION I WANT A CLARIFICATION THAT IN THE ITR 4 SOME OF T.R.P'S
ARE ENTERING ONLY " GROSS RECEPTS, GROSS PROFT, EXPENSES & NET PROFIT ONLY"
BUT SOME T.R.P'S ARE COMPLETELY FILLING ALL THE PROFIT & LOSS ACCOUNT AND BALANCE SHEET WITHOUT MAINTAING BOOKS WHICH IS CORRECT" PLEASE GIVE ME A CLARIFICATION, BASICALLY I AM ALSO ONE OF THE TRP.- MARUTHI RAM
CA Aditya Goel
(Chartered Accountant)
(368 Points)
Replied 21 July 2011
Keep sharing information like this Sir. It helps alot.
Thanks alot.
CA SURENDRA KUMAR RAKHECHA
(Practising CA at Surat)
(26263 Points)
Replied 21 July 2011
Originally posted by : CH.MARUTHI RAM | ||
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GOOD EVNG NAVINJI, THANKING U FOR SHARING WITH US ABOUT U/S 44AD, IN THIS CONNECTION I WANT A CLARIFICATION THAT IN THE ITR 4 SOME OF T.R.P'S ARE ENTERING ONLY " GROSS RECEPTS, GROSS PROFT, EXPENSES & NET PROFIT ONLY" BUT SOME T.R.P'S ARE COMPLETELY FILLING ALL THE PROFIT & LOSS ACCOUNT AND BALANCE SHEET WITHOUT MAINTAING BOOKS WHICH IS CORRECT" PLEASE GIVE ME A CLARIFICATION, BASICALLY I AM ALSO ONE OF THE TRP.- MARUTHI RAM |
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NO NEED TO FILL ALL THE DETAILS AT ALL.
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I presume they are filing the return in Manual Form.
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If you use a software; it will not accept Form No. 4, it will automatically converts it into Form 4S.
CH.MARUTHI RAM
(TAX CONSULTANT)
(69 Points)
Replied 21 July 2011
GOOD EVNG SIR, THANKING U SIR HELPING ME TO MOVE IN A RIGHT WAY - MARUTHI RAM
Bhavesh Manilal Patel
(Propritor)
(22 Points)
Replied 23 November 2012
Sir, if Vat Payable is not paid in time , then it will not be disallowed u/s 43 B if assesse declares his income u/s 44AD. Clarify Sir...
CA Vanamala Phani Kumar
(Proprietor of M/s Vanamala and Co)
(972 Points)
Replied 23 November 2012
Originally posted by : Bhavesh Manilal Patel | ||
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Sir, if Vat Payable is not paid in time , then it will not be disallowed u/s 43 B if assesse declares his income u/s 44AD. Clarify Sir... |
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As per provisions of Sec 44AD.....assumed that the turnover declared is inclusive of disallowed amount As per Sec 40, 40A, 43B....!!!
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