Income tax return
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
11 November 2016
My mother is a retail vegetable seller. Her annual annual profit is approx 4.5 lakh . How she can file IT return? Can she avail any exemption?
11 November 2016
She can file return u/s 44AD taking minimum 8% of gross receipts as net profit. for example if she declares gross receipts from retail vegetable business of Rs. 3200000/- she will have to show at least 256000/- as net profit without claiming expenses as it will be deemed to have been provided. Now if you have worked out her net profit at Rs. 4.5 lakh the basic exemption limit applicable to her is Rs. 250000/- only (Rs. 300000/- if she is senior citizen). Besides this she will also get tax rebate of Rs. 2000/- u/s 87A (upto the net profit of Rs. 5 lac) so exemption limit will be effectively Rs. 270000/- or Rs. 320000/- whichever is applicable. Exemptions are available u/s 80C and 80D mainly to an individual assessee.
11 November 2016
She can file return u/s 44AD taking minimum 8% of gross receipts as net profit. for example if she declares gross receipts from retail vegetable business of Rs. 3200000/- she will have to show at least 256000/- as net profit without claiming expenses as it will be deemed to have been provided. Now if you have worked out her net profit at Rs. 4.5 lakh the basic exemption limit applicable to her is Rs. 250000/- only (Rs. 300000/- if she is senior citizen). Besides this she will also get tax rebate of Rs. 2000/- u/s 87A (upto the net profit of Rs. 5 lac) so exemption limit will be effectively Rs. 270000/- or Rs. 320000/- whichever is applicable. Exemptions are available u/s 80C and 80D mainly to an individual assessee.
Amol S Joglekar
(Expert)
11 November 2016
She can opt for section 44AD.
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