Computation of ITR

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Elbin (Querist)
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20 July 2023 U/s 44AD - Presumptive Scheme. How can we categorize payment rec'd in cash, Bank, tds & bad debts under 6% & 8% ?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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20 July 2023 CASH TRADE RECEIPTS UNDER 8%
WHILE BANK RECEIPTS WITH TDS UNDER 6%.
DEBTORS RECEIPTS ARE NOT CONSIDERD UNDER TURNOVER.

Elbin

Elbin (Querist)
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20 July 2023 What about outstanding debtors ?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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20 July 2023 If the amount received before filing relevant return by bank, then under 6%, otherwise treated under cash trade.

Elbin

Elbin (Querist)
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20 July 2023 & what if after filing the return the outstanding payment rec'd in digital payment ? Is there any provision we can make u/s 44AD ?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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20 July 2023 By whatever mode you receive the amount after filing return; the transaction is being treated as 'cash sales' while filing return u/s. 44AD IT act.

Elbin

Elbin (Querist)
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20 July 2023 Thank u so much for clearing my doubt 😄

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Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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20 July 2023 You are welcome.

Elbin

Elbin (Querist)
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20 July 2023 Had one more query if any advance payment rec'd from client for project & the project gets delay due to some reasons for years. Should we treat as gross receipts in the same year u/s 44AD or when the project gets complete after raising the invoice

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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21 July 2023 When project get completed or invoice date, whichever earlier.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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14 September 2024 Good luck.

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