Presumptive income query

Tax queries 274 views 4 replies

one of my client has done business consisting of following

Business Turnover - 50,00,000/-

Profit as per Books - 21,50,000/-

but can we declare profit @ 8% u/s 44AD i.e. 4,00,000/-

 

please advise 

 

Thanks in Advance

 

 

 

 

 

 

Replies (4)

Dear Abdul

 

Yes, u can adopt the Sec 44AD i.e. 8% of turnover but if you adopt Sec 44AD then you have to follow all the conditions mentioned in that Section. Before adopting sec check whether u covered in eligilbe assessess also check whether urs client is eligible clients. and also if you adopt this section then you will not allowed for any deduction against that 8% income except some one. so these are the basic conditions of 44AD for any further details let me know.

 

Thanks

Dear Rahul

i have checked it, he is an eligible assessee 

thanks for your help

 

Regards

Abdul Khader

 

 

 

also one more query 

will any book entries i have to change, or only in computation i have to show 8% income 

 

 

 

Dear Abdul

it makes no difference in books if you adopts the section 44AD, Only you have to mentioned that in your income tax return that you have adopted 44AD and file your return as per that.

 

Thanks


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