Return filed under Presumptive Taxation

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A taxpayer filing under Section 44AD of presumptive taxation for their contract business, with TDS deducted under Section 194C, is seeking clarification. Their Form 26AS shows a turnover of Rs. 9 lacs and booked expenses result in a profit of Rs. 6 lacs. They wish to know if they can declare a profit of 8% of turnover (Rs. 72,000) instead of the higher actual profit, as permitted under Section 44AD. The consensus from the replies is yes, they can declare the lower profit.

DIVYESH JAIN

DIVYESH JAIN (Querist)
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15 January 2022 Dear Sir,

My individual income tax return is filed under Section 44AD under Presumptive Taxation from past 5 years. I am into Contract business and my tds gets deducted under Section 194C.

The total turnover of my business is coming to Rs. 9 lacs as per Form 26AS and after booking of business expenses the profit is coming to Rs. 6 lacs.

My query is since my return is filed under Section 44AD can I show profit at 8% of the turnover which comes to Rs. 72,000 instead of showing higher profit.

Please help me in this matter.

Regards,
Divyesh Jain