Presumptive Tax

This query is : Resolved

Mahendra Naik (Querist)
Follow

27 March 2010 I have heard that from April 2010, all small businesses having turnover of less than 60 lakhs can opt for presumptive taxation by declaring profits at 8 % of t/o and paying tax thereon. My query is

1. I am having a proprietory firm engaged in the distribution of mutual funds. My turnover by way of commissions/brokerage ranges between 6 to 8 lakhs per annum. Can I opt for the above scheme?

2. I am following cash system of accounting instead of mercantile system, since the beginning. Is this in accordance with the legal provisions?

Thanks and Regards

CA Ashok Kumar Sahu

CA Ashok Kumar Sahu (Expert)
Follow

27 March 2010 as per my opinion

you are not cover under presumptive taxation u/s 44AE it's covers only for retail Trading business,

let's take other opinion

Mahendra Naik

Mahendra Naik (Querist)
Follow

28 March 2010 I have read in DNA Money that from F.Y. 10-11, this provision is applicable to all businesses having turnover of less than 60 Lakh Rupees and want confirmation of the same.

Regards

CA Ashok Kumar Sahu

CA Ashok Kumar Sahu (Expert)
Follow

29 March 2010 YES, fro the f.y. 10-11 A.Y. 11-12, Sec-44AD cover all business except business of playing, hiring or leasing good carriages,

hence you are also cover u/s 44AD for f.y. 10-11 limit of turnover is 60Lacs

Message likes : 1 times

Mahendra Naik

Mahendra Naik (Querist)
Follow

30 March 2010 Can you comment on the second part of my question re following cash method of accounting instead of accrual?

Thanks and Regards

CA Ashok Kumar Sahu

CA Ashok Kumar Sahu (Expert)
Follow

30 March 2010 yes, you can maintain your a/c in cash method, no problem in IT Act.

Message likes : 1 times

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now