Presumptive tax

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

09 August 2015 I am a wholesaler in vegetables. I have not filed my income tax returns for the asst year 14-15. My turnover is Rs.75 lakhs. My net profit is 2%.i am not maintaining any books. can i file my return showing this profit? or should i declare 8% net profit u/s 44AD?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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09 August 2015 Yes you can file the return showing 2% profit as it is below the basic exemption limit.

Querist : Anonymous

Querist : Anonymous (Querist)

09 August 2015 my audior says section 44ad will apply. otherwise i have to get audit report.but time for filing audit report expired. is it safe to file 2% income? will there be scrutiny? kindly clarify sir

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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09 August 2015 When the profit is below basic exemption no audit report need to be filed. Audit report can be filed up to 31st August. If you have earned more than 8% profit declare 8% profit and no scrutiny will be there.