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Queries regarding 44ad

870 views 9 replies

rizwan

Student CA Final

36 Points Posted on 18 October 2013

According to section 44AD of the income tax act 8% is the profit which is chargeable to tax..

My question is if I fall under a category of an individual and having a business of manufacturing. would this section would be applicable to me.?

If the answer for above is yes, suppose my turnover for year ended is 10 lakh than 8% of the same comes to 80000. will my tax calculation will be slab wise as general or directly 30% on 80000?

If the answer for the above is slab wise, it means that i dont have any tax liability?,than What are the required document that should i maintain to take a benifit of the above

Replies (9)

Mohan

Accounts Mgr

209 Points Posted on 18 October 2013

The Provision of Sec.44AD Presumptive Income @ 8% can applies in your case since (i) Income from Manufacturing (ii) Income below 100 lacs (iii) assessee is Individual. Hope there was no need to maintain separate books of accounts but retain ur bills / vouchers since the section itself says to calculate the presumptive income on the basis of turnover.....be wait for experts openion also. best regards.

Mohan

Accounts Mgr

209 Points Posted on 18 October 2013

/articles/section-44-ad-of-income-tax-act-17916.asp#.UmENoVNBJic the refered article may useful to you

rizwan

Student CA Final

36 Points Posted on 18 October 2013

Thanks to all of you sir

my question is, will i will be liable for tax on that 80000, or my tax liability will be calculated as slabwise? hence therefore no tax?

Vishal Agarwal

Article

25 Points Posted on 18 October 2013

Slab rates will be applicable and no need to maintain records as per income tac act 1961

rishabh

artical

23 Points Posted on 18 October 2013

Chapter vi a deduction n then slab rate.will be applicable..

CA prakash jain

35 Points Posted on 18 October 2013

Correct chapter vi exemptions less other business losses less hp loss den slab

Raunak Vora

article

86 Points Posted on 19 October 2013

Gud question buddy but ur r not getin answers upto the mark :(

Dayanand

22 Points Posted on 19 October 2013

I have a doubt as to can we claim the loss under hp with this presumptive income. Let some expert give an opinion on this.

Mohan

Accounts Mgr

209 Points Posted on 19 October 2013

hi rizwan, INDIVIDUAL tax rates applicable. Hence No tax liability in your case your net profit Rs.80,000/- is under the exempted limit. If any TDS on account of your PAN you can fully claimed from the I.T.Dept.