Itr u/s 44ad with profit & with p&l a/c

WorkingGuru (Businesss) (29 Points)

27 July 2019  

I am a Textile trader and the turnover of my partnership firm is well below 50Lakhs. My CA has been filing my income tax under section 44AD for the past 3 years, but while doing so he also draws up a P&L Account & Balance Sheet and says it is included while filing the IT returns. He constructs a calculated profit of ~16-30% in the P/L Account and my Income Tax has been ~2Lakh - 3Lakh after deducting Partners Remuneration.

He says he can also file returns claiming 8% profit, but I would likely get a notice in such a scenario.

Is his way of filing returns the recommended way to file returns ?

I trust him, my family does too. We have been advised to get a second opinion by an acquaintance. Please advise.

I am a Textile trader and the turnover of my partnership firm is well below 50Lakhs. My CA has been filing my income tax under section 44AD for the past 3 years, but while doing so he also draws up a P&L Account & Balance Sheet and says it is included while filing the IT returns. He constructs a calculated profit of ~16-30% in the P/L Account and my Income Tax has been ~2Lakh - 3Lakh after deducting Partners Remuneration. He says he can also file returns claiming 8% profit, but I would likely get a notice in such a scenario. Is his way of filing returns the recommended way to file returns ? I trust him, my family does too. We have been advised to get a second opinion by an acquaintance. Please advise.

Read more at: https://www.caclubindia.com/forum/query-on-section-44ad-1--459747.asp
I am a Textile trader and the turnover of my partnership firm is well below 50Lakhs. My CA has been filing my income tax under section 44AD for the past 3 years, but while doing so he also draws up a P&L Account & Balance Sheet and says it is included while filing the IT returns. He constructs a calculated profit of ~16-30% in the P/L Account and my Income Tax has been ~2Lakh - 3Lakh after deducting Partners Remuneration. He says he can also file returns claiming 8% profit, but I would likely get a notice in such a scenario. Is his way of filing returns the recommended way to file returns ? I trust him, my family does too. We have been advised to get a second opinion by an acquaintance. Please advise.

Read more at: https://www.caclubindia.com/forum/query-on-section-44ad-1--459747.asp
I am a Textile trader and the turnover of my partnership firm is well below 50Lakhs. My CA has been filing my income tax under section 44AD for the past 3 years, but while doing so he also draws up a P&L Account & Balance Sheet and says it is included while filing the IT returns. He constructs a calculated profit of ~16-30% in the P/L Account and my Income Tax has been ~2Lakh - 3Lakh after deducting Partners Remuneration. He says he can also file returns claiming 8% profit, but I would likely get a notice in such a scenario. Is his way of filing returns the recommended way to file returns ? I trust him, my family does too. We have been advised to get a second opinion by an acquaintance. Please advise.

Read more at: https://www.caclubindia.com/forum/query-on-section-44ad-1--459747.asp
I am a Textile trader and the turnover of my partnership firm is well below 50Lakhs. My CA has been filing my income tax under section 44AD for the past 3 years, but while doing so he also draws up a P&L Account & Balance Sheet and says it is included while filing the IT returns. He constructs a calculated profit of ~16-30% in the P/L Account and my Income Tax has been ~2Lakh - 3Lakh after deducting Partners Remuneration. He says he can also file returns claiming 8% profit, but I would likely get a notice in such a scenario. Is his way of filing returns the recommended way to file returns ? I trust him, my family does too. We have been advised to get a second opinion by an acquaintance. Please advise.

Read more at: https://www.caclubindia.com/forum/query-on-section-44ad-1--459747.asp
I am a Textile trader and the turnover of my partnership firm is well below 50Lakhs. My CA has been filing my income tax under section 44AD for the past 3 years, but while doing so he also draws up a P&L Account & Balance Sheet and says it is included while filing the IT returns. He constructs a calculated profit of ~16-30% in the P/L Account and my Income Tax has been ~2Lakh - 3Lakh after deducting Partners Remuneration. He says he can also file returns claiming 8% profit, but I would likely get a notice in such a scenario. Is his way of filing returns the recommended way to file returns ? I trust him, my family does too. We have been advised to get a second opinion by an acquaintance. Please advise.

Read more at: https://www.caclubindia.com/forum/query-on-section-44ad-1--459747.asp