44ad

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Vivek (Querist)

28 July 2013 Dear Sir,
In one of the case actual profit rate is about 3% however assessee opts section 44AD. In the above case actual closing stock is about Rs. 4 lacs but if I make trading a/c acoording to profit u/s 44ad then closing stock comes to about 6 lacs.

Now please advise me how to manage the problem and in return I should show actual closing stock of Rs. 4 lacs or
I should show it Rs. 6 lacs.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)

28 July 2013 No need to prepare financial statements, if presumptive taxation is opted.
Closing stock should be the actuals irrespective of 44AD opted or not.

Vivek

Vivek (Querist)

28 July 2013 Actually, I need to prepare to submit at bank, if I prepare it on actual profit and closing stock basis then it create contradiction with profit shown in return.

And Bank person insist on trading a/c with copy of return to submit at bank.

Vivek

Vivek (Querist)

28 July 2013 Please reply soon.

Ganeshbabu K

Ganeshbabu K (Expert)

28 July 2013 bank may not interested or expects you to file ITR4S you better file ITR4 by taking some professional help

i think you should have balancesheet and p&L for bank loan purposes

Vivek

Vivek (Querist)

29 July 2013 but assessee is interested in opting 44AD and bank is asking to submit income tax return with trading a/c and balance sheet

Ganeshbabu K

Ganeshbabu K (Expert)

29 July 2013 That is what i have also said in my reply.

yes banks will ask to file return with assets and liabilities and profit and loss account..

take help if nearest professional he will prepare and file your return

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