Accounting standard 7
This query is : Resolved
09 January 2012
hii . i wud like to know how to calculate income of the assessee in the following case . the assessee is a contractor whose contract receipts for the year do not exceed 60 lakhs .should revenue be calculated by applying Accounting Standard 7 or can he declare income as per Sec 44 AD of the Income Tax Act ?
12 May 2012
AS 7 is applicable for ACCOUNTING RECORDS. So in the books of account, the profit is to be calculated as per AS 7.
For income tax purpose, the Income Tax Act provides benefit of Section 44AD. So income can be declared @ 8% of gross receipts. (THIS IS ONLY FOR THE PURPOSE OF INCOME TAX)
For income tax purpose, the Income Tax Act provides benefit of Section 44AD. So income can be declared @ 8% of gross receipts. (THIS IS ONLY FOR THE PURPOSE OF INCOME TAX)
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