Section 44AD

Page no : 2

Dipesh Jha (PRACTICE ) (673 Points)
Replied 24 February 2020

Mr.Raja ji

I have not include income i am talking about Receipt of cash there is two term once Receipt of cash and another there is recognised of income...and 2 diferent term has 2 different menaning

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RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 24 February 2020

Originally posted by : Dipesh Jha
	Mr.Raja ji I have not include income i am talking about Receipt of cash there is two term once Receipt of cash and another there is recognised of income...and 2 diferent term has 2 different menaning

Yes Dear...

If we follow receipt basis then We can account the receipts in FY 20-21.

Madhavi Pandit (78 Points)
Replied 24 February 2020

I think Mr Pravin has explained the reason why the sales received after due date should still be shown as sales of FY 19-20. As per mercantile system the sales should be recorded and also you will be generating invoices during FY 19-20 which should match with the turnover.

In my personal view, since section 44AD has come into existence to help businessmen who don't have to maintain accounts, it will be difficult for them to find out which sale amount was received before due date and which was received after(He won't be having Sundry debtors records). Also , it will further require complicated calculations the next year onwards because the sale of FY 19-20 realised till due date would be excluded from calculations of FY 20-21. So, it would be easy if this section is made on cash basis.

Kapadia Pravin (17259 Points)
Replied 24 February 2020

In my above post, I mentioned example pertaining to what the query is.

Under current 44AD provisions -
6% on digital sale receipts
8% on cash sales
8% deemed on credit sales outstanding