23 August 2011
Q:1 Ill be filing my business return which is below 60 lakh turnover limit by September 2012 for f .y 2010-2011.What penalty i am liable to pay.
Q::2 Does section 44 applies only if one goes for presumptive taxation or in all cases when one is doing business.
Q::3 Suppose a person turnover is 50 lakh rupees for f y 2010-2011.He takes profit as 12%. 6 lakh profit.But because of business related expense the net profit after all expenses excluding 80C investment comes below 8% say 3,95000.He maintains all his books of accounts and haven't opted for presumptive taxation scheme before and plans to go without preemptive means even now.So is it required to audit his account?I feel if one go for presumptive tax and when profit is less than 8% than only audit is necessary.
Q::4 If a person doing normal business and his net profit is taxable but less than 8% of turnover and he maintains all books of account.Than is audit necessary?
Q::5 What are the penalty charges on late payment of advance taxes.
23 August 2011
Q:1 Ill be filing my business return which is below 60 lakh turnover limit by September 2012 for f .y 2010-2011.What penalty i am liable to pay. . Reply- You mean to say that like "Standing Committee of Parliament" who is delaying the Jan Lokpal Bill knowingly, you also desire to file your Return Late. . If your income calculated @8% is taxable, you are liable for Interest U/s 234-A for late filing of Return . However Section 234B and 234C are not applicable as per ss 44AE(4).
In my view immunity should be given till the return is filed on or before due date. . Penalty of Rs 5000/- can be levied in such cases.
23 August 2011
Q::3 Suppose a person turnover is 50 lakh rupees for f y 2010-2011.
Ans. In this case Net Profit is 395000/- The assessee can show net profit as per P& L A/c, Provided he gets his account audited. For that he has to Spend Rs. 10000/ towards Audit Fee.
Looking to the business sense, it is better for him to pay extra 500/ Rs tax on additional Income of Rs 5000.
By Declaring 400000/- profit (Book Profit 395000), he will save time and cost both for all.
23 August 2011
Q::4 If a person doing normal business and his net profit is taxable but less than 8% of turnover and he maintains all books of account.Than is audit necessary?
23 August 2011
Nope sir because of some of my family members being unwell and hospitalized i was not able to file my return on time but in past 6-7 years i was always able to file my return on time.
One more small doubt.Its being said that going for presumptive method have disadvantages like in dtc 80c wont be part of deductions.But say declaring at say 8.5% and than going for 80c deduction one can very well plan taxing and save few more bucks than presumptive method.Is it advisable.
Also i read banks avoid giving loans and its tough to get foreign visas for children of tax filer if one go for presumptive taxation scheme as they feel the person is not genuine in reporting his records.Is this news genuine.
Also in future can one change presumptive taxation method to any other if he goes into loss or he has to continue same and do necessary audit expense and all?
23 August 2011
Also i read banks avoid giving loans ....
Reply-
section 44AD, does not say that you can not prepare Profit & Loss A/c and Balance Sheet. In Banks and Visa Purpose you can submit the relevant Financial Papers.
It is the Profit which has been considered for IT Purpose , will require adjustment. A good accountant can do all what is required within the legal frame work.
23 August 2011
Also in future can one change presumptive taxation method ....
Reply...
There is no lock-in period U/s 44AD. In case of losses or Total Income is lower than the taxable limit, Tax Audit is not required. . In case of Profits lower than 8% , and Total Income is Taxable..... The assessee's option to get audited the accounts is always open. He can file his return at Book Profit in this way.
23 August 2011
Thanks sir for all the replies ill closed this thread on just one more clarification.
Am i allowed to share some links of other side over here.As those are by some CAs and they mentioned them as downside of presumptive taxation(regarding bank loans and foreign trips).
Also on other site comparing same with dtc regime states in DTC no deduction will be allowed once 8% presumptive rule is applied.In present regime 80c is allowed i agree but in future it wont.Now that is the only downside for me not to go for presumptive rule.But i feel once the rule comes some clarification or changes on same might come.
SO am i allowed to share those links and further any valuable inputs on doubts i mentioned.
23 August 2011
Definitely you may provide the links.
As far as DTC is concerned, according to the situations, planning will also develop.
Before going through all the links which are supposed to be provided, I once again suggest that for all such purposes, statements drawn from our Books may be produced so as to explain the true situation. Thanks in advance for the information likely to be shared.
CAclubindia
