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Presumptive income query

Abdul Khader (STUDENT) (192 Points)

08 August 2015

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

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4 Replies

Rahul Verma (CA-Final) (484 Points)
Replied 08 August 2015

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

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Abdul Khader (STUDENT) (192 Points)
Replied 08 August 2015

Dear Rahul

i have checked it, he is an eligible assessee

thanks for your help

Regards

Abdul Khader

Abdul Khader (STUDENT) (192 Points)
Replied 08 August 2015

also one more query

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

Rahul Verma (CA-Final) (484 Points)
Replied 08 August 2015

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