Presumptive taxation on USD income and Buying assets

This query is : Resolved

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This discussion explores the risks associated with presumptive taxation on USD income, particularly when purchasing assets that exceed declared profits. The user is concerned about potential scrutiny and how to safely build assets, including placing funds in fixed deposits or savings accounts, while navigating TDS implications. They are seeking guidance on best practices and a tax expert to clarify their situation, especially as their business involves software development and rental services, which may not qualify for the presumptive scheme under Section 44AD.

Prakash

Prakash (Querist)
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26 September 2024 All of my income is in USD. My expenses are very low.
I am filing taxes under presumptive taxation scheme for business.
If i show greater than 8% of my turnover as profit but lesser than actual profit I made, What are my risks ?
Is there risk of getting a scrutiny If I buy assets that are worth more than the income on which i paid taxes ?
Are there any risks If I put all the money in Fixed deposits or savings bank account (because of TDS)
How do I safely build assets, what are the best practices I need to follow ?
I might use services of someone who is expert in this field answers my doubts clearly. I am fast growing individual who is looking to expand and looking for best tax consultant

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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26 September 2024 What is your nature of business?

Prakash

Prakash (Querist)
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26 September 2024 @Dhirajlal Software products sales and service

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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26 September 2024 Are you purchasing software from market (dealer) or developer?

Prakash

Prakash (Querist)
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26 September 2024 Sir, I am building my own software and renting them on monthly basis, I also provide software development services to one client but it is 10% of my turnover

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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26 September 2024 That means you are service provider and your services will not fall under eligible business u/s. 44AD IT act.

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