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Turnover for 44ad

Manoj Kumar (Accountant) (108 Points)

13 July 2018

Turnover to be considered for 44ad inclusive of tax or exclusive of tax. please help.

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Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (175687 Points)
Replied 13 July 2018

What do you mean by Total Turnover/Gross Receipts?

• Total Turnover / Gross Receipts are amount received/receivable from clients in respect of sale of Previous Year.

• Section 145 relating to Method of Accounting applicable to Section 44AD As per this section the assessees have an option to choose either Mercantile or cash method.

• Gross Receipts are the amounts received from clients for the services provided or to be provided and does not include the value of material supplied by the client.

What are the receipts which forms Part of Turnover?

1) Sales Tax, excise duty, Cess, and other Levy.

2) Sales of unusables empties and Packages.

3) Service Charges charged for delivery

Read more at: https://www.caclubindia.com/articles/critical-analysis-of-section-44ad-9048.asp

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G.S.Prasad (CA Practice ) (34 Points)
Replied 14 July 2018

is exempt income like agl.income of Rs 4500 .and income from one property will come under turnover and can we file ITR 4.the additional rebate of 2And 22 percent ie over and above 8 Percent be claimed kindly guide me.the above two itms comes under turnover.

Saifullah Khalid (Autodidact/Curious ) (633 Points)
Replied 15 July 2018

Originally posted by : G.S.Prasad
	is exempt income like agl.income of Rs 4500 .and income from one property will come under turnover and can we file ITR 4.the additional rebate of 2And 22 percent ie over and above 8 Percent be claimed kindly guide me.the above two itms comes under turnover.

NO..the agricultural income and rent from single house will not form part of your turnover hence will not be clubbed with total turnover...turnover here specifically refers to the PGBP (Profit and gains from bussiness and profession)... Let me suggest you a practical approach..just go to efilling web portal of Income tax and download the ITR4 Form for A.Y 2018-2019 ...play with it ...fill values of your Bussiness turnover + agricultural income (as yours is below 5000/- rupees so no problem with thatin ITR 4) + Rental income...you will get your answers automatically ... try some "hands on" ...