section 143(1)(a) of income tax act

Page no : 3

S ELAVARASI (ACCOUNTANT) (2975 Points)
Replied 24 March 2018

Originally posted by : Dhirajlal Rambhia
	In the second query......... profit share would be taxfree........ While remuneration would be taxable in the hands of partner.....

Thank You Sir.,

The profit share will be shown in his ITR or no need to Show?

Upgrade to CAclubindia Pro. Subscribe Now!

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (171153 Points)
Replied 24 March 2018

Yes, In ITR 3 there is specific column to declare the details about partnership/ its shares etc.....

1 Like

S ELAVARASI (ACCOUNTANT) (2975 Points)
Replied 24 March 2018

Originally posted by : S ELAVARASI
	Sir., He want file his ITR... Now, I'll be file his ITR n ITR 3 without any documents for receipts and Expenditures. Then, How to prepare F.Statements like Balance Sheet and Profit & Loss account? How many (%) percentage shown the profit as 8% or 50%...?

Sir.,

How many percentage of Profit will be shown this case. Bcoz, No more Books of Accounts

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (171153 Points)
Replied 24 March 2018

" How to prepare F.Statements like Balance Sheet and Profit & Loss account? How many (%) percentage shown the profit as 8% or 50%...?"

Here being brokerage and commission income received, presumptive scheme not applicable.

Profit margin should not be less than 75%, for any adverse effect...

S ELAVARASI (ACCOUNTANT) (2975 Points)
Replied 24 March 2018

Thanks once again Sir.,

If 75% means.,

If earn 10 Lakhs then will be show the profit Rs.7,50,000... Am I correct?

Upgrade to CAclubindia Pro. Subscribe Now!

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (171153 Points)
Replied 24 March 2018

That's what it means........ but its not easy to earn 10 lakhs brokerage without any set up, as said earlier...

So, check actual receipts first, and take call....

1 Like

S ELAVARASI (ACCOUNTANT) (2975 Points)
Replied 24 March 2018

Thank You for the replies Sir.,

Can we Use any other code of Business?

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (171153 Points)
Replied 24 March 2018

Rather than code........ here nature of business is important, which is having mixture of brokerage & commission,........ so 8% not possible....... Yes if you can justify.... profit margin can go down.....

1 Like

S ELAVARASI (ACCOUNTANT) (2975 Points)
Replied 25 March 2018

Good Evening Sir.,

Sorry for the wrong understandings....

The Person Doing Documentation works, Building related Documents like Patta, Citta, EB and Approval for Constructions, Local municipality works for related costructions and the Land Slaes (It's not any time or continuoslly some time its have a Lucky and get some commission with share his co-Persons)...