Sec 44ad

What if turnover 1.5 crore and profit declared 15%?

If turnover 1.5 crore then anyways there is liability of tax audit, no matter how much profit you show.

If you want to show profit is less than then audit is compulosry

Turonver exceed so audit is compulsory

Originally posted by : Kamlesh
	What if turnover 1.5 crore and profit declared 15%?

If gross receipt exceeds 60 lacs ( FA 2012 - 1 crore) then presumptive taxation is not available. hence tax audit is compulsory ..furthermore, tax liability will be calculated on the basis of net profit of audited books of accounts. percentage of profit is irrelevant.

benefit of presumptive taxation is available on gross receipt basis only.

THANKS,
SUVAJIT

Originally posted by : Nirmit Choraria
	Thanks every one for you views and answer.. Now what if I have profit of below 8% but i dont get my books of account audited and just file my return what can be the consequnces faced...????

if books of acounts are not audited
if you would declare a higher sum in your return ( higher than 8% return) then you would have to pay tax on such higher sum.

if you would declare a lower sum in your return ( lower than 8% return) then you would have to pay tax on presumptive basis.

THANKS

SUVAJIT

@ SUVAJIT SAHU

I dont use the 8% presumtive income my turnover is 45lac and profit is 4% and i file ITR4 but dont prepare an Audit report nor have a keep any books of account then..

 

what can be the consequences i have to face...???

hi nirmit ........

it's not about 8% or 4% , it's all about quantum of profit

suppose your turnover is 45 lacs and net profit comes out to be 250000 but 8% on 45 lacs is 360000(net profit as per presumptive taxation assuming all expenses are allowed) .

now if books of accounts are audited

you can go with 250000.

if books of accounts are not audited.

you have to pay taxes on 360000

case 1 ---if you have shown net profit of 380000 in ROI.

then you have to pay taxes on 380000.( A.O will presume 380000 is your correct net profit and you have not opted for presumptive taxation, as sec 44ad is not a mandatory presumptive taxation scheme)

case 2-- if you have shown net profit 320000.

you have to pay taxes on 360000.

 

crux- law is drafted in such a way to ensure that there is no scope of revenue loss to the department  in any situation.

THANKS,

SUVAJIT

@ SUVAJIT
 

What you say is completely corect what if i show my profit and file my return...

AO will make this out when he calls my case in Assessment order or Scrutiny till that time i am safe 

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