Extra profits under presumptive returns

you may show more profit than 8%. As per 44AD minimum 8% is must. No limit on higher profit.

less than 2 crores & exact 8% so u need not to audit ur accounts u/s 44AB & u need not to maintain ur books of accounts u/s 44AA.

if more than 2 crores or more than 8% then u have to maintain books of accounts u;s 44AA & audits ur accounts u/s 44AB + 5 years

CA. Jitendra Sikhwal from jodhpur

I am showing onely eight percent and filing ITR but is has a section to show balance sheet not accounts. How to show it.

the extra profit over and above 8% can be withdrawn by the owner of business showing as drawings.

Sir, if profit is to be reduced then entry will be p&l dr
To

Sir, if profit is to be reduced then entry will be
P&l dr
To capital credit.
Here capital is increasing, how can we show as drawings. My view is to adjust the profit to capital account.
Alternatively if profit is less than 8% and the assessee wants to declare 8% and don't want any headache from IT Department. How he'll show his extra profit? Think again and answer carefully because it matters in real life

just declare 8% and add it to capital

cash balance may vary

if profit is more than 8% then declare it and add it to capital

declared income is lower than revise it
if p & l account showing more than 8% then u hv to decalre that much of income in IT