Notice under section 142(1)
This query is : Resolved
05 October 2019
One of my friend is doing business of fruits saller ,His business is of unique nature, he is a fruits seller, use to get fruits from Farmers and sale it in market.
Collect the sale consideration in cash and deposit it in his own bank and after keeping his own commission send sale consideration to Farmers through NEFT.
His commission is 9 lakh but has to make some expenses out of his commission like truck fair etc.
Cash deposit in his bank is about 1 crore and 36 lakh.
His actual profit after making all expenses from his commission is about 3 lakh.
Know if he treats his business as commission agent then he have to pay tax on 4 lakh 50thousand but in actual his income is less.
What is the best way to treat this case as per income tax point of view.
Collect the sale consideration in cash and deposit it in his own bank and after keeping his own commission send sale consideration to Farmers through NEFT.
His commission is 9 lakh but has to make some expenses out of his commission like truck fair etc.
Cash deposit in his bank is about 1 crore and 36 lakh.
His actual profit after making all expenses from his commission is about 3 lakh.
Know if he treats his business as commission agent then he have to pay tax on 4 lakh 50thousand but in actual his income is less.
What is the best way to treat this case as per income tax point of view.
06 October 2019
This is not a commission business actual buying and selling happens. Calculate 8% profit on 1.36 crore and pay taxes..
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