curiousv (Mr.) (82 Points)
09 July 2024This is about FNO trading income
all transactions are digital
Actual profit is more than 6% of the turnover but some people claim - you can only declare 6% and pay tax accordingly..
Please advise if this is true? or I must pay taxes on actual profit (higher than 6% of the turnover?)
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(177713 Points)
Replied 09 July 2024
Under Sec. 44AD IT act, the assessee is allowed to declare minimum 6% or anything higher profit of digital turnover. The condition is the assessee is required not to opt out of the presumptive assessment for next five years, otherwise he will be required to audit his accounts u/s. 44AD(e) of IT act, for next five years from the year of opting out.
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(177713 Points)
Replied 09 July 2024
NO. At your discretion, minimum 6%.
curiousv
(Mr.)
(82 Points)
Replied 09 July 2024
Are you sure it is at our discretion ? if yes everyone would just post 6% as profit ...nothing more than that ..even if their profit is like 20% of the turnover ..please clarify
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(177713 Points)
Replied 09 July 2024
As such declaring 6% or more profit is at assesses desecration while filing return u/s. 44 ID act.. The consequences of imbalance of the capital or bank balance remains answerable, in case of any search in future.
CAclubindia
