Maintenance of accounts u/s.44aa

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

28 April 2017 We are a partnership firm having a supply business turnover of Rs.27.00 lac during the financial year 2016-2017. Which ITR should we use ? If we declare income u/s.44AD, whether we are required to maintain account books ?

CS Advocate Abhishek Goyal

CS Advocate Abhishek Goyal (Expert)

29 April 2017 If you declare income u/s 44AD you will have to show minimum 8% of gross receipts as net profit i.e. 27 Lacs x8%= 216000/- which will be taxable at flat rate of 30% plus educational cess. Remember from aY 2017-18 you will not be getting any separate deduction of partners remuneration and interest on capital since from this assessment year it shall be deemed to have been allowed within 8%.

Querist : Anonymous

Querist : Anonymous (Querist)

29 April 2017 Thank for your reply. If my entire turnover is through bank only, may I show 6% income on turnover ?

CS Advocate Abhishek Goyal

CS Advocate Abhishek Goyal (Expert)

29 April 2017 Yes you can show at 6% if you can show entire turnover through NEFT/RTGS/online transfer or cheque mode.

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