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Income tax queries

Satvir Singh (Newly minted CA) (1733 Points)

27 May 2010

In case of presumptive income, is 8% the only rate or is it the minimum rate, (i.e. can we use rate more than 8%)

Also, should agriculture income be included in gross total income to be written on acknowledgement?

Is 8% the rate of gross profit or net profit. If net, what expenses can we enter in column 51c of Schedule P&L of ITR 4?

THANKS

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10 Replies

Ca Aashish Upadhyay (CONSULTANTS) (913 Points)
Replied 27 May 2010

Dear Singh Sahab

8% is the minimu rate u can declare higher amount of profit!
No not in acknowledgement but in computation
8% is net profit no need to give any expenses details

This is the crux of presumptive tatxtaion and benefit t00!

regds

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Parikh Navin Keshavlal (Accountant) (45 Points)
Replied 27 May 2010

Sir,

Individual has two different businesses. Turnover of one business exceeds audit limit and for other, below audit limit.

Is he supposed to get audited two business accounts ?

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Rachit (Analyst) (913 Points)
Replied 27 May 2010

Navin,

Yes the individual would be required to get the accounts of both the business audited

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CA Amit Kanani (Practicing CA) (338 Points)
Replied 27 May 2010

yes, rachit is right. u hav to take turnover of individual from all business and not each business.

and satvir, 8% of gross receipt and not profit. u can declare higher income but not lower. and all expenses shall be deemed to b allowed u/s 30 to 37, but if it is partnership firm u can get deduction of interest and salary to partners u/s 40(b)

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Ca Aashish Upadhyay (CONSULTANTS) (913 Points)
Replied 27 May 2010

Dear Navin

In case of individual turnover of all the business is to be taken into consideration ! Hence the audit is mandatory dear!

DO THE AUDIT AND ENJOY ....the PARTY

regds

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Vikram Soni (Student) (103 Points)
Replied 27 May 2010

Yes the individual would be required to get the accounts of both the business audited

Nitin Grover (CS) (1228 Points)
Replied 27 May 2010

Dear All

if u show profit less than 8% or other limits like below 5% in related cases and other income.

than Audit is also compulsory even turnover is below 40 lakhs.

Regards

pramod kumar jampala (CA final student) (119 Points)
Replied 27 May 2010

THIS IS FOR CREATING AWARENESS TO THE USER'S OF "ONLINE ITR FORMS"

WHILE CLICKING THE BUTTON "CALCULATE TAX" (available on the top right in "Taxes paid and Verification" sheet),THE FORM ITSELF AUTOMATICALLY CALCULATING THE TAX. BUT THE PROBLEM ARISES IN THE CASE OF INTEREST(U/s 234 B & C), AS THE SOFTWARE IS CONSIDERING THE OLD SLAB OF ADVANCE TAX i.e. Rs.5000/- AS AGAINST THE NEW SLAB OF Rs.10000/-..........., THIS ISSUE NEEDS RECTIFICATION FROM THE SIDE OF SOFTWARE DEVELOPERS FOR THE INCOME TAX DEPARTMENT AND TILL THAT TIME THE USERS NEED TO BE CAUTIOUS...

THANK YOU

Pramod Kumar Jampala

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