Income on presumptive basis
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
27 April 2012
my client has showing purchase of goods at 300 and sale at 600 (trading business) he wants to opt for 44AD. Turnover below 60lacs,
is he require to show more then 8% PGBP,
if he shows 8% then how to justify AO?
please its urgent help
thanks in advance
is he require to show more then 8% PGBP,
if he shows 8% then how to justify AO?
please its urgent help
thanks in advance
CA Prashant Gupta
(Expert)
28 April 2012
U/s 44Ad prescribed the minimum amount of profit shown by assessee. If assessee has income more than 8%, then he should disclose more income.
In case of scrutiny, the AO can assesse the greater income and accordingly tax the same.
In case of scrutiny, the AO can assesse the greater income and accordingly tax the same.
CA BIREN SHAH
(Expert)
29 April 2012
agree with gupta sir....
Prakash Kochar
(Expert)
01 May 2012
You can show income @8% of your gross T.O. and claims to have not maintained books of accounts, unless you claim to have earned higher than prescribed u/s. 44AD.
By the introduction of words Claimed to have been earned in section 44AD(1), the legislature shows his intention to accept specified income as returned income even if higher sum is earned by eligible assessee unless it is claimed by assessee in his Income Tax Return.
unproportionate saving/investment out of excess earning may put in trouble.
By the introduction of words Claimed to have been earned in section 44AD(1), the legislature shows his intention to accept specified income as returned income even if higher sum is earned by eligible assessee unless it is claimed by assessee in his Income Tax Return.
unproportionate saving/investment out of excess earning may put in trouble.
09 May 2012
No problem he can do it till the turnover does not exceed the minimum limit
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