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Presumptive tax

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This query is : Resolved

Sohil (Querist)

28 February 2011 I have 2 questions regarding this

1::I have a business regarding selling rubber raw material in wholesale and retail way.Can i opt for presumptive tax scheme?

I have been maintaining books of accounts and have paid taxes according to it so far.

if yes

than
2:: Suppose my gross receipt(purchase) is 55 lakhs and sales is 48 lakhs.8% on 48 lakhs is 3 lakh 84000.Now i wanted to know whether indirect expenses(like professional taxes,income tax paid and other expense) and 80 c limit can be deducted from profit or not.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)

28 February 2011 For the AY 2011-12, you can show 8% of the turnover as your business profit.
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Income tax is not allowed as an expenses.
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It will be deemed that other expenses have been allowed to you and after allowing all the expenses, arrived profit is 8%.
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You can claim deduction U/s 80C.
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You can also claim other deductions under Chapter VIA.

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