Firm chit commission Income

Save Share

This query is : Resolved

Quick Summary

This discussion clarifies that commission income from a chit business cannot be offered under presumptive taxation (Section 44AD). If your firm maintains books of accounts and has gross commission receipts below £600,000, a tax audit is not required, regardless of the profit margin. The market trend for profit is noted to be around 25%.

Vinodita Peela

Vinodita Peela (Querist)
Follow

12 October 2021 Whether the chit commission received from business of chits can be offered at 8% profit?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
Follow

12 October 2021 No. Commission income is not eligible for presumptive assessment u/s. 44AD.

Vinodita Peela

Vinodita Peela (Querist)
Follow

12 October 2021 Chit business firm is maintaining books of accounts with gross receipts below Rs.600,000 commission . How much income is to be offered without conducting tax audit?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
Follow

12 October 2021 There is no condition for profit margin, when income is commission in nature.
For 6 lakhs commission receipt whatever profit be, tax audit is not applicable.
Market trend is about 25%.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now