CA Pratik Dharod (Bussiness) (178 Points)
01 December 2017if someone is trading in F&O on regular basis and he has turnover of around 50 Lacs and has actual profit of 10 lacs.
Now my question is, can he file return U/S 44AD and show profit of 8% and avoid extra burden of tax ? as Act itself allow us to show profit of 8% if turnover is below 2 Crore.
Any case law for referance?
I have calculated turnover on the basis of sum of all debits and credits in my ledger account.
Gokul Chandran
(B.Com)
(32 Points)
Replied 01 December 2017
CA Pratik Dharod
(Bussiness)
(178 Points)
Replied 02 December 2017
| Originally posted by : Gokul Chandran | ||
 |
44ad for whom?Individual,HUF,Firm(except LLP),Other than export oriented business.Eligible BusinessAll business except for assessee carrying on,-agency business-income from brokerage/commission-other business which falls in 44ABPresumptive Income to be shown-8%or higher sum on the turnover(in case when assessee declares lower income he needs to carry on 44ab tax audit (44aa applies for professionals - maintenance of books of accounts)Deductions and Disallowances-All the deductions (sec 36)& Disallowances (sec 40)DEEMED to be allowed.Partners Salary and Interest on Capital are not to be included (i.e it should not be deducted from Profit)Turnover Limit-44ad is not applicable if the turnover exceeds Rs 2 Cr in the previous financial year.The assessee is required to follow and declare income as per 44ad provisionfor 5 years |  |
Assessee is individual.
I know what 44AD provision is. i just want to know weather i can show 8% profit even if my profit is 20%.
kindly give case law referance as provision is not clear on this matter.
Neha Mittal
(240 Points)
Replied 02 December 2017
CA Pratik Dharod
(Bussiness)
(178 Points)
Replied 02 December 2017
| Originally posted by : Neha Mittal | ||
|
yes u can do that bcz books of accounts are not mandatory to be prepare if u are opting 44ad and actual profit doesn't matter. min profit should be 8% | |
Thanks.
CAclubindia
