Sec 44ad, "claims to have been earned?"
This query is : Resolved
19 February 2014
Respected Sirs
A sole proprietory construction firm has to file its ITRS UNDER SECTION 44AD for FY 2013-14 shortly. it has sold 3 flats having combined saleable area of 3450 sq ft. The books of a/c is showing a profit margin of 32% per sqft translatin g into a profit of Rs 27,60,000/- ( Sale receipt for 3 flats is Rs 8625000.)
KINDLY GUIDE WHETHER THE ASSESSEE CAN OFFER PROFIT @ 8 % PROFIT ONLY IE 690000/- U/S 44AD? WHETHER INCOME TAX DEPT. HAS THE FREEDOM TO RAISE THE PROFIT AS PER THE BOOKS OF THE ASSESSEE?
THANKS
A sole proprietory construction firm has to file its ITRS UNDER SECTION 44AD for FY 2013-14 shortly. it has sold 3 flats having combined saleable area of 3450 sq ft. The books of a/c is showing a profit margin of 32% per sqft translatin g into a profit of Rs 27,60,000/- ( Sale receipt for 3 flats is Rs 8625000.)
KINDLY GUIDE WHETHER THE ASSESSEE CAN OFFER PROFIT @ 8 % PROFIT ONLY IE 690000/- U/S 44AD? WHETHER INCOME TAX DEPT. HAS THE FREEDOM TO RAISE THE PROFIT AS PER THE BOOKS OF THE ASSESSEE?
THANKS
19 February 2014
Yes the assessee can show profit @ 8% of the turnover.
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