Nature of the business: Mr.X running an online publication business with some friends. And it runs under his name and payment comes to his bank account. So you can say he is sole-propritership of business (but it's not registered). Payments are mainly author fees who want to publish and it also comes from outside india.
Total turnover for 2012-13 is 18 Lakhs.
And please clarify if I am wrong in the following points:
1) Section 44AD is aplicable to this business.
2) His total income as per 44AD (calculated at 8%) will be 1.4 Lakhs, since the total income less than 1.8L. Hence, he doesn't need to pay Income tax.
3) This business doesn't required to matain books of account or auditing (as long as its total turnover less than 60L).
Looking forward your reply. Thank you.
CAclubindia
