Presumptive Taxation

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Deepak Mulewa (Querist)
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28 November 2016 Hello, I have confusion over presumptive taxation. For eg if assesse have turnover of 1 crore and disclose 10 lacs as income which is more than 8% of turnover and he is not require to maintain any documentary evidence for any expenses or purchase and income cannot question on income. Now if assessee actual profit is 20lacs but only disclosed 10lacs, will this amount to undisclose income or if it is geniun than how this income could be utilised in future. I do not understand the intension of this section. If assesee file with some adoc profit more than 8% and disclosing the entire turnover. What would happen to extra profit remaining in his hand for which he had not paid tax but at the same time he not wrong by paying tax on more than 8% income?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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28 November 2016 The excess profit is not an undisclosed income. If you earn 20 lacs profit account it and deposit in bank ac and pay tax on 10 lacs only. It is legally permitted no body will question you.

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