I am a medical profeessional. My gross receipt in a year is less than 50 lakh (and is above 10 lakhs) and I intend to go for presumptive taxation under section 44 ADA . I would declare my expense to be 50% and for the remaining 50%, I intend to pay tax. But two questions arise:
1)Do I still need to maintain an accounts book? (eventhough I don't have to get it audited? Some opine that section 44 ADA only talks about not getting audited under specified conditions. But still section 44 ADA doesn't negate section 44 AA and that I would have to maintian a book of accounts (but need nt audit it)
2) Can I claim expenses to be 50% eventhough I may not have that much expense in reality? Suppose my total gross receipt is 48 lakhs this year and I claim expenses to be 50%, would it be OK if my bank balance increase by 35 lakhs this year? (Because if 50%of my income is used up as expenses, I should have used up atleast 24 lakhs and only 24 lakhs should have remained). Can a high bank balance be an issue?
CAclubindia
