44ad

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Sanchit Jain (Querist)
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30 May 2012 My question is that, in case a businessman takes the credit of sales in the bank account, eg: Rs.100 and his closing balance is balance of bank is more than 8, can he still draw a profit and loss account declaring a profit of more than 8%, say 15%(for VAT, etc.) and choose to pay income tax on 8% profits?

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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30 May 2012 Section 44AD is applicable only for Income Tax purposes. It has no relevance for other laws.

Accordingly, the assessee can declare 8% of turnover as his income and prepare separate financial statements for other purposes.

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