Become a Certified GST Practitioner in just 58 hours. Register Now!

Presumptive Income

Nikita Kulkarni (STUDENT) (262 Points)

30 March 2018

If an assessee files ITR on presumptive basis for 2 years and then wants to file normal business return. Is it allowed and vice-versa?

Reply
Follow
Share

10 Replies

Divakar (Student CA Final ) (11857 Points)
Replied 30 March 2018

Then now tax audit is compulsory from FA 2017... if u r followed presumptive taxation consecutive 5 years once u adopt that

Upgrade to CAclubindia Pro. Subscribe Now!

CA Naveen Chand (Chartered Accountant) (12729 Points)
Replied 30 March 2018

If you are opting for presumptive scheme, you must

File presumptive scheme for atleast 5 years in continuation
If you decide to show and file profits as per regular business before the end of these 5 years, you will lose presumptive benefits and disallowed from presumptive taxation for the subsequent 5 years. (5 years shall be counted starting the year in which you first file usual taxes for such business).

1 Like

Divakar (Student CA Final ) (11857 Points)
Replied 30 March 2018

But u hv to do tax audit once u opt out from presumptive taxation before 5 years

MURALIDOSS (INCOME TAX PRACTITIONER) (1329 Points)
Replied 30 March 2018

Dear sir,

a person bought his own name 2 cars, but these two cars run in a partnership firm,now firm account declared alredy income,tax and filed incometax return. but not showing these cars as asset of the company, But if he want to file in his individual return, is it need show again u/s.44 AE for cars income or just shown the profit from firm and other income to declare the return?

please..

CA Naveen Chand (Chartered Accountant) (12729 Points)
Replied 30 March 2018

can't be shown in individual u/s 44ae

revise the return if possible

show the purchase of car in the f/y 2017-18

and show in itr a/y 2018-19

Upgrade to CAclubindia Pro. Subscribe Now!

Divakar (Student CA Final ) (11857 Points)
Replied 30 March 2018

NO Need to show car when u r filing presumptive taxation..44AE FOR GOODS CARRIAGE vehicle..truck....and how u r earning revenue from car....just file ur indivual itr showing ur income and income from firm

MURALIDOSS (INCOME TAX PRACTITIONER) (1329 Points)
Replied 30 March 2018

THE FIRM ACCOUNT COMPLETED U/S.44AB, AND DECLARED INCOME 10000/- BY TWO PARTNERS

BUT THESE TWO CARS IN HIS OWN NAME AND LOAN ALSO HIS NAME? WITHOUT SHOWING BALANCE SHEET OF THESE TWO CARS CAN?

Divakar (Student CA Final ) (11857 Points)
Replied 30 March 2018

Business is running in ur firm and not in ur individual name... And just file simple return if u hv not business income.... Income from firm and other income... And why u gonna for presumptive income.... A salaried person just file simple itr and don't disclose his personal assets in itr like car purchase any thing...