Anonymous (Business) (240 Points)
26 October 2018
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(177824 Points)
Replied 26 October 2018
GTI less Ch VI A and B/f losses both
RAJA P M
("Do the Right Thing...!!!")
(128091 Points)
Replied 26 October 2018
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(177824 Points)
Replied 27 October 2018
Good Morning, Dear....
The query is specifically asked for the interpretation of 'Total Income' as incorporated in sec. 44AD/ADA ...
As per sec. 2(45) of IT act....... "total income" means the total amount of income referred to in section 5, computed in the manner laid down in this Act
Section 5 determines the scope of total income for a resident or a non-resident assessee. It follows that for a resident assessee, the total income include all income that accrue, arise, earned or received.
However various chapters and sections of the Income tax Act further lays down which income would not form part of total income, computation to be made, clubbing of Income, set off or carry forward of loss and deductions to be made in computing total income.
RAJA P M
("Do the Right Thing...!!!")
(128091 Points)
Replied 27 October 2018
| Originally posted by : Dhirajlal Rambhia | ||
 |
Good Morning, Dear.... The query is specifically asked for the interpretation of 'Total Income' as incorporated in sec. 44AD/ADA ... As per sec. 2(45) of IT act....... "total income" means the total amount of income referred to in section 5, computed in the manner laid down in this Act Section 5 determines the scope of total income for a resident or a non-resident assessee. It follows that for a resident assessee, the total income include all income that accrue, arise, earned or received. However various chapters and sections of the Income tax Act further lays down which income would not form part of total income, computation to be made, clubbing of Income, set off or carry forward of loss and deductions to be made in computing total income. |
 |
GOOD MORNING MY DEAR SIR.,
Thank You for the Repy Sir...
But., My Doubt is "GTI less Ch VI A and B/f losses both"
How is it possible GTI - Ch VI-A...?
After less Ch VI-A is Taxable Income. But, Presumptive tax calcultaed Total T/O @ 8/6% = GTI (it will come 8/6%) after deduct Ch VI-A...
Then How Sir...?
I confused now based on thi one --->>> GTI less Ch VI A and B/f losses both
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(177824 Points)
Replied 27 October 2018
" Presumptive tax calcultaed Total T/O @ 8/6% = GTI (it will come 8/6%) after deduct Ch VI-A..."
Yes, you are correct when you wish to declare income u/s. 44AD...... Gross turnover is taken into consideration.
Now, consider when you declare less than 6/8% profit margin.......... so, the question arises of audit !!!
At this jucture the 'Total Income' comes into picture (and not Total Turnover)
Anonymous
(Business)
(240 Points)
Replied 27 October 2018
RAJA P M
("Do the Right Thing...!!!")
(128091 Points)
Replied 27 October 2018
| Originally posted by : Dhirajlal Rambhia | ||
|
" Presumptive tax calcultaed Total T/O @ 8/6% = GTI (it will come 8/6%) after deduct Ch VI-A..." Yes, you are correct when you wish to declare income u/s. 44AD...... Gross turnover is taken into consideration. Now, consider when you declare less than 6/8% profit margin.......... so, the question arises of audit !!! At this jucture the 'Total Income' comes into picture (and not Total Turnover) |
|
Thank You Sir.,
It's mean GTI takes all the documents which is shown in the returns. Am I correct Sir...?!
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(177824 Points)
Replied 27 October 2018
With little difference.......... Not GTI........ But 'Total income' [which as per sub-sec. 2(45) is net taxable income] takes care of all the deductions.....
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(177824 Points)
Replied 27 October 2018
Dear Vikas,
If you do not have any income under 'PGBP' in previous year, question of audit or adjustment of b/f losses doesn't arise. So, first be clear of your query....as presumptive assessment u/s. 44AD is for presumptive (eligible) business only and not for salary income...
Anonymous
(Business)
(240 Points)
Replied 27 October 2018
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(177824 Points)
Replied 27 October 2018
Yes, F&O trading is business....... & assessed u/h. PGBP......
Anonymous
(Business)
(240 Points)
Replied 27 October 2018
Anonymous
(Business)
(240 Points)
Replied 27 October 2018
Thanks. sir, To be more specific Let;s say if an salaried individual with f&o business turnover less than 1cr. and having loss then his total income will be checked for aplicability of tax audit. If it cross BEL then tax audit required. So my main doubt was if a person income cross BEL because he also has salary income which is just above 2.5 lacs whether his 80 C investment of 50 K will be consider or not because after deducting this Total income falls below BEL and he can skip tax audit of f&o business. Sir, you have cleared my doubt that taxable income will be checked here and not GTI. In other case ,if he has profit this year but less than 6% of turnover , if this profit above BEL let say 3 .5 lac profit, but he has b/f losees of 1.6 lacs then after adjustment of B/F losses of 1.6 lacs total income remain 1.9 lacs only and being below BEL no need of tax audit arises. I think I got it now .Yes, of course 44AD filer dont carry b/f lossess as he declare 6% in p.y. but when a normal assesee wish to file ITR having b/f losess too( who never filed under sec 44AD earlier and even not breaking 5 yr condition.is an separate issue) then its has been said by some people that you are declaring less than 6% and income also above BEL so tax audit apply.
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(177824 Points)
Replied 27 October 2018
Yes. In both the cases, tax audit not applicable for normal assessment, when not opted for 44AD in preceeding years.
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