CA Krishna Chaitanya M (Chartered Accountant) (463 Points)
06 September 2012if assesse maintains books, whose tournover is less than 60 lacks, As per books of accounts, profit is more than 8 % on tournover, he filed return of income based on sec 44 AD by applying presumptive taxation ,
is it correct to show exactly profits @ 8% on tournover, instead of showing actual higer profits as per book of accounts.
HARISH MEHTA
(Chartered Accountant)
(210 Points)
Replied 06 September 2012
Yes u can show exactly 8% profit insted of Higher profit but it is advisable to show more than 8% profit.
Pankaj Gupta
(CA final & M.Com Student)
(3358 Points)
Replied 06 September 2012
As per sec 44AD You are required to show profit @ 8% or actual profit,whichever is higher. But as Mr. Mehta said......You should show a bit higher profit,,,,near about 9%-11%(atleast).
CAclubindia
