N.N.RAJAN (PROFESSIONAL) (243 Points)
08 January 2017Sir,
A person has Non-business income of Rs.210000/- His Business Turnover is 10 lacs. He does not maintain any books. If we add Rs.80000/- business income u/s 44AD (8% on Rs.10 lacs.), his total income comes to Rs.290000/-. But since Sec 44AD it is not applicable Total Income is below Rs.250000/- ( Specified Taxable Exemption limit). Please let me know how to proceed?
Ashok Kumar
(CA qualified)
(389 Points)
Replied 08 January 2017
There is no confusion in it. Go ahead declaring 8% as income. The provision you are referring to is as follows:
If income declared under PGBP is less than 8% of gross receipts and Total income including income under other heads is above basic exemption, then the assessee has to maintain books and get them audited under section 44AD
you have no limitation in declaring 8% or higher amount as profits
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