Presumptive taxation u/s 44ad

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

27 November 2014 One person is doing service and dealing in listed equity shares by HUF and turnover for current year is Rs. 90 lac and profit earned Rs. 12 lac and does not maintain books of accounts..whether such person can show income on basis of presumptive taxation @8% on Rs. 90 lac so that his total income comes to Rs. 7.20 lac otherwise actual income earned is Rs. 12 lac...whether it comes under tax planning or evasion of income ?? or require to show such income as short term capital gain but there is no deduction u/s 80C allowable on that.

Amol S Joglekar

Amol S Joglekar (Expert)
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27 November 2014 Be carefull in deciding if it is business or capital gain.The profit % suggests that it is NOT business but investment. And hence likely to be treated as income from Capital Gain.