thnaks Resham....!!
would try my best to answer your queries
(`m still a student lol......)
Karan Teli
(Life Is just an Illusion...!!)
(4573 Points)
Replied 10 September 2011
thnaks Resham....!!
would try my best to answer your queries
(`m still a student lol......)
Sohil
(Learner)
(631 Points)
Replied 10 September 2011
Ill rephrase my question pointwise.Give me a day time as i have to do some reading regarding same .
Thanks
Karan Teli
(Life Is just an Illusion...!!)
(4573 Points)
Replied 10 September 2011
thank u resham jee..!!
Mahesh
( CA Final)
(132 Points)
Replied 13 September 2011
Hi Karan it's good effort, but if u do same using chart it's clear cut, thank's for infor...........
Karan Teli
(Life Is just an Illusion...!!)
(4573 Points)
Replied 13 September 2011
Thakns Mahesh, but the issue was that the it wasnt getting pasted so i have to try for this...
Sohil
(Learner)
(631 Points)
Replied 14 September 2011
Doubts
1:: Person have turnover less than 60 lakhs,He maintains all books of accounts.But profit from his business is 5%.He can opt for presumptive but since profit less he opts against it. Is audit necessary in this case. Note::even after 5% profit comes is more than exempted tax limit
2::Person have opted for presumptive this year can he change his method of accounting in next year or will audit become compulsory on it if done?
3::Person wants to declare presumptive profit at more than 8%.Can he do the same?
4::In presumptive over 8% figure does 80c deduction applies(or 8% is including that deduction).If it does now will the same continue in dtc regime? I hope i am much clear this time.
Karan Teli
(Life Is just an Illusion...!!)
(4573 Points)
Replied 15 September 2011
Yes magnet..!!
Give me sometime..,
I have to answer your query and even Karan`s query aove, but i`m to busy with this tax audit season..,
please bear wih me..
Karan Teli
(Life Is just an Illusion...!!)
(4573 Points)
Replied 15 September 2011
Sharma sir and karan bro...!!
First point is that 44AF is being merged with 44AD from 1.4.11 and hence it is redunded.
Coming to calculation part of business.. tax prepares are not at all asssuming that all businesses on earth needs to earn a retrun of 8%. It only takes into consideration those business units which are very effective in managing and developing the economy and the other view is that it gives you an ease to them in maintaing books of accounts and check out for profits...
I have handled practical case of a cahin beetel shopee and a laundry shop who has a turnover of 18 lakhs and lakhs respectivley but the profit earned by then is just about 6% and 9% approx.. i have suggested for showing the profits under Income from other sources since it has to comply with this PGBP provisions and also ITR4S is complicated to fill accurately. The other obvious reason is that we were paid low too..
So, i hope this would help you to solve the differences raised by you for which i thank you since they have given me again some knowledge..
Any more queries are still welcomed...
Resham...!! waitin for the bombarding
Magnet bhai aapka number aagala he...:-)
Karan Teli
(Life Is just an Illusion...!!)
(4573 Points)
Replied 15 September 2011
hey magnet.., your queries were too interesting...!!
here is just what i have interpretted with repect to your queries-
1.I would again reply the same as i did for Karan`s question since i did not find any other way and that would be the most easiest alternative. Its treat it as Income form Other Sources. If the profit is below the B.E.L there is no compulsion in filing of return so if he wishes to file he can go ahead with this process.
2. About this point after reading the whole section also there have been no word saying CHANGE IN METHOD OF ACCOUNTING and all, so i have interpretted as there is no effect for such change.
3. any person who wants to declare income more than 8% can do so and for this they are no special provisons applicable to it since department wants higher revenue which will be earned by higher turnover when declared.
4. This section assumes that only internal deductions are not availble that is deductions for the expense incurred and the disallowances. It has no word for Deductions of chapter - VI and they are allowed as per the provision. Practically also we have given deductions in many cases so they are allowed.
Karan Teli
(Life Is just an Illusion...!!)
(4573 Points)
Replied 15 September 2011
Friends i`m not an expert and my interpretation may go wrong also so i request you if i have committed any mistakes please do let me know so i can improve myself....
Sohil
(Learner)
(631 Points)
Replied 16 September 2011
Thanks karan for all the reply.
But regarding my first question will audit become compulsory if taxable income is more than basic limit?
Ill be putting forward this question again in front of my CA and see whats his reply is and will share his reply here.
One thing just for knowledge purpose sharing.
On cnbc Awaaz there is a program called tax guru from reputed CA subhash lakhotia.
Last episode i saw he said he had personally written a letter to CBDT asking whether a person wishing to file sugam form with more than 8% profit.Can he do so.
The reply from CBDT was if profit is more than 8% than please donot go for sugam.
I also read presumptive section topic in direct tax from final year notes and it do mentions that one can use the form to file with more than 8%.But since a personal reply to a CA they say no.One should avoid it as i feel it might go for scrutiny.
My personal feeling.
Karan Teli
(Life Is just an Illusion...!!)
(4573 Points)
Replied 16 September 2011
Yes..!!
once the assesse has chekced out and thinks to go for Presumptive taxation sections he has to use ITR4S form only...,but there is one point in ITR4S which none could solve it so i have trued to decare his income as income from other sources...,
please do let me know if there are ant misinterpretations...
A suggestion - please dont take decisions on those serial interviews since they are all cooked up.., i have found the biggest blunder on it too.., Go through the provisons and dont let your mind get confused in such thoughts..
Sohil
(Learner)
(631 Points)
Replied 16 September 2011
Thanks again.
Can you share the blunder in pm please.I am an eager person to grasp knowledge.Might help me to know more about the taxing laws.
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