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satish kumar Chauhan (Querist)
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18 August 2011 My qry is,what net profit should be u/s 44AD, = or < 8% of gross sale + other income i.e interest received, cash discount,Labour received shown in P & L a/c for example if sale of firm Rs. 30.00 lac and interest received Rs. 0.25 lac, Cash discount Rs. 0.38 lac.

minimum Net profit should be Rs. 2.40 lac or 3.03 lac u/s 44AD

Thanks in advance.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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18 August 2011 Cash discount can be considered as an item of P&L A/c, whereas Interest, if it is not in the normal course of business , has to be considered under IFOS.

Gross Receipts=30.00+0.38= 30.38 lacs
1. Profit @ 8% 243040
2. Income from Other Sources 25000.

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