problem regarding 8 % profit

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sahil (Querist)
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22 September 2010 i have heard from somewhere that if ur turnover is more than 30 lacs but less than 60 lacs then 8 % of profit or more is to be shown in books is it true

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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22 September 2010 Pl read section 44AF of the Income tax Act,1961.

CA Prashant Gupta

CA Prashant Gupta (Expert)
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22 September 2010 Mr. B. Chackrapani is right but from A.Y. 2011-12 section 44AD is applicable.
In your questiion you asked 60 lac limit it is also from A.Y. 2011-12.
For A.Y. 2010-11 max limit is 40 lac and profit is 5% as per sec 44AF.
from A.Y. 2011-12 44AF will be omitted and new 44AD is added then max limit is 60 lac and profit is 8%.
So for A.Y. 2010-11 read sec 44AF and for A.Y. 2011-12 read sec 44AD

CMA Arif Farooqui

CMA Arif Farooqui (Expert)
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23 September 2010 these sections would be applicable only when one calculate tax on presumptive taxation basis. otherwise there is no predetermined minimum percentage of profit, you can show your actual profit/loss.

sahil

sahil (Querist)
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23 September 2010 so tell me is this applicable 4 my case

CMA Arif Farooqui

CMA Arif Farooqui (Expert)
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24 September 2010 if ur turnover is Rs 30 Lakhs, then u may choose any of two method.
1. pay tax as per presumptive taxation at predetermined rate of profit or
2. pay ur tax after calculation profit/loss.

sahil

sahil (Querist)
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24 September 2010 plz tell me is it applicable in above or not

sahil

sahil (Querist)
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24 September 2010 do i need to show 8 % of profit of turnover in books or not

CMA Arif Farooqui

CMA Arif Farooqui (Expert)
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25 September 2010 as i told, u have option to apply any of the two method for calculating taxable income.
1. pay tax as per presumptive taxation at predetermined rate of profit or
2. pay ur tax after calculation profit/loss.

sahil

sahil (Querist)
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25 September 2010 kkk

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