Smart_CA (B.Com) (24 Points)
26 May 2013Sales for the year is Rs.51,00.000
Book profit is Rs.4,59,000 (i.e. 9% of sales)
Whether assessee can opt for presumptive taxation u/s 44 AD of I.T. Act by declaring 8% income of Rs.4,08,000 in the income tax return and paying tax on it and at the same time crediting the capital account in the books by 9% at Rs.4,59,000?
Chakravarthi K
(kchakravarthi2008@gmail.com)
(112 Points)
Replied 26 May 2013
When you are offering income under presumptive basis. i.e, U/s.44AD it means you are ignoring the book result. So eventhough the book result shows 9% of the turnover, you can offer income at the rate of 8% on the turnover.
CS,CA F,Numrologi TusharSampat
(CS CA F Numerologist Astrologer Graphologist Face reader Vastu Expert)
(85930 Points)
Replied 26 May 2013
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When you are offering income under presumptive basis. i.e, U/s.44AD it means you are ignoring the book result. So eventhough the book result shows 9% of the turnover, you can offer income at the rate of 8% on the turnover. |
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AGREED....
sreenath
(Articled Assistant)
(219 Points)
Replied 26 May 2013
Agreed, even though you can offer less than 8%, but you need to get your books of Account Audited.
Pakshal Shah
(Practicing Chartered Accountant)
(271 Points)
Replied 27 May 2013
Saurabh Maheshwari
(B.com,ACA)
(5923 Points)
Replied 27 May 2013
As soon as you have opted presump scheme of sec 44AD....then Sec 44AD(2) provides that nothing contained in Sec 28 to 44 will apply(except decu of int/remuner in case of firm).....In short Sec 44AD will prevail over the normal provisions of the Act and therfore the Assessing Officer cannot go back to see wehat's the ACTUAL PROFIT...
As decided in case of DIT vs GMBH DSD(German co) in Hon"ble Delhi HC.
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