Presumptive profit income issue
This query is : Resolved
27 November 2018
Namaste all,
ASSESSEE FILED REUTRN U/S 44AD CLAIMING 8% INCOME ON HIS TURNOVER OF RS 1,10,00,000/-
DECLARED NET INCOME @8% IS 8,80,000/- SAME HAS BEEN CREDITED TO HIS CAPITAL A/C IN BALANCE SHEET.
WHERE AS HIS ACTUAL NET INCOME/ SURPLUS IS 11,50,000/- WHICH HE INVESTED IN FIXED DEPOSITS,
SUPPOSE INCOME TAX DEPT ASK FOR SOURCE OF INCOME WHAT WOULD BE THE ACTION ON DIFFERECE 2,70,000/-
ASSESSEE FILED REUTRN U/S 44AD CLAIMING 8% INCOME ON HIS TURNOVER OF RS 1,10,00,000/-
DECLARED NET INCOME @8% IS 8,80,000/- SAME HAS BEEN CREDITED TO HIS CAPITAL A/C IN BALANCE SHEET.
WHERE AS HIS ACTUAL NET INCOME/ SURPLUS IS 11,50,000/- WHICH HE INVESTED IN FIXED DEPOSITS,
SUPPOSE INCOME TAX DEPT ASK FOR SOURCE OF INCOME WHAT WOULD BE THE ACTION ON DIFFERECE 2,70,000/-
27 November 2018
whole idea of 44AD is that you are not aware of your gains and losses. As long as your turnover is correct and the profit offered to tax is equal to or above the minimum required limit, there should not be an issue with regards to the explanation of sources. You need to ensure that turnover is properly accounted and there should not be any credits in the bank that you have not accounted for.
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