Income from retail business(urgent)

This query is : Resolved

Sumit Agarwal (Querist)
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12 February 2013 One of my client friend has annual income of around 2 to 2.5 lacs per annum from his shop(business of grocery items),plz tell me if there is any requirement of books of accounts.Can i show it u/s 44AD for filing his return for A.Y.2011-12.plz explain me what should i do? If i show his gross receipts more than 25 lakhs u/s 44AD then is he liable for vat registration or anything like that under any other law.

CA Suraj Lakhotia

CA Suraj Lakhotia (Expert)
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13 February 2013 You did not mention the turnover of your client.

If income from business exceeds 1.2 lacs or Gross receipts exceeds Rs. 10 lacs, assessee has to maintain such books of account and other documents as may enable the Assessing Officer to compute his total income.

CA Suraj Lakhotia

CA Suraj Lakhotia (Expert)
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13 February 2013 Section 44AD can be applied and you can declare income on presumptive basis without having to maintian books of account.s

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