44 ad
This query is : Resolved
19 April 2017
Assessee has a total turnover of 50 lakhs from his trading business. He opts for 44AD and files the return for 4 lakhs as Incem and pays the tax accordingly.
His margin in this particular business is more than 25 percent. Hence he purchases a property for Rs 12 lakhs.
Now, how can he explain it to the IT officials at the time of scrutiny or in the future whenever necessary , the source for purchase of property as the retun ncome is only 4 lakhs. He doesnt maintain proper books of accounts as it is not neccessary
His margin in this particular business is more than 25 percent. Hence he purchases a property for Rs 12 lakhs.
Now, how can he explain it to the IT officials at the time of scrutiny or in the future whenever necessary , the source for purchase of property as the retun ncome is only 4 lakhs. He doesnt maintain proper books of accounts as it is not neccessary
19 April 2017
This is a case of Escaped Income, you should pay proper tax if you know your margin as you can declare higher income u/s 44AD
Message likes :
2 times
19 April 2017
In such a case books of accounts need to be maintained to prove the source or to be proved through bank transaction details.
Message likes :
1 times
19 April 2017
It is not an escaped income option is given to the assessee to declare 8% Income inspite of earning more income.
19 April 2017
there is no need to maintain books of accounts (once you do that, you cannot claim 44AD!)
all you need to do is to show the bank statement that establishes the gross revenue and shows that the money for the property was paid out of the bank account itself. No need to worry about what the taxable income was.
all you need to do is to show the bank statement that establishes the gross revenue and shows that the money for the property was paid out of the bank account itself. No need to worry about what the taxable income was.
Message likes :
1 times
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- About TDS & Income Tax
- Section 194JA & JB Income which ITR Form to use
- Pass word to open justification report for Q1 for FY 2026-27
- PPF interest-As Exempt Income disclosure
- Under construction property in ITR
- Scrutiny and reopening of past returns
- Booth for sales promotion
- Upload Level ValidationITR3Category of Defect B/D
- Building tax payment deduction in rental Income
- F & O PROFIT REPORTING FOR AY 2026-27
- Difference in GSTR3B system generated which is correct and actual Payment it asks
- Indian IT Portal issue in computing tax as per UK-India DTAA
- Capital Gains on sale of residential flat
- PF Taxable Income
- Clarification on Tax Audit Applicability and Reporting of F&O Transactions in ITR-3
- Interest credited in FY2025-2026 & TDS therein by EPFO does not reflect in AIS or Form 26AS
- 44ad eligble money lending interest
- Taxation in the hands of Landowner under JDA
- Delisted shares sold in off market/ Rebate u/s87A
- In Exports Sales HSN details where to fill
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
