Official income under presumptive taxation for investment purpose?
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19 June 2022
Hello,
If we declare income under 44ADA, then what will be offical income i.e actual income or presumptive declared income??
Then what will be the official income? White income...
Example:- credit received 10 lakhs
Declared u/s 44ADA 50% i e 5 lakhs
So what is the official income for investment purpose?
Actual income is 10 lakhs declared in IT 5 lakhs
If we declare income under 44ADA, then what will be offical income i.e actual income or presumptive declared income??
Then what will be the official income? White income...
Example:- credit received 10 lakhs
Declared u/s 44ADA 50% i e 5 lakhs
So what is the official income for investment purpose?
Actual income is 10 lakhs declared in IT 5 lakhs
20 June 2022
10 lacs is white income you can invest no question will be asked.
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20 June 2022
but isnt it contradictory in IT returns we are showing 5 lakhs as income and using 10 lakhs as official income
20 June 2022
It's not contradictory it's tax concession allowed to small business and professional.
20 June 2022
Then in case of 44AD, if turnover is 1 crore and net profit is 8 lakhs i.e 8%, then here is Rs. 1 crore white income???
20 June 2022
Yes, Rs. 10 Lacs will be treated as your genuine income. The government is giving relief to small taxpayers by this presumptive scheme where they can show 50% of their turnover as profit without maintaining any books of accounts.
20 June 2022
Then what about this case??
Then in case of 44AD, if turnover is 1 crore and net profit is 8 lakhs i.e 8%, then here is Rs. 1 crore white income???
Then in case of 44AD, if turnover is 1 crore and net profit is 8 lakhs i.e 8%, then here is Rs. 1 crore white income???
20 June 2022
The normal profitability can't be 92% of turnover.
It will be normally 10 to 20 percent of turnover.
It's encouraged to declare more profit than 8% under 44AD.
It will be normally 10 to 20 percent of turnover.
It's encouraged to declare more profit than 8% under 44AD.
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