Sec. 44ad presumptive taxation [clarification]
This query is : Resolved
15 August 2011
Dear Senior Colleagues
kindly clarify following point
1) if a person having Turnover from Trading Business Rs. 31 Lac and also maintain all Books as prescribed u/s 44AA need not show profit at 8% because he is not opting Presumptive taxation for computation of income.
Some of Income Tax Practitioner are of the opinion that-
all Business cover under this section and even if assessee maintaining books of A/c he has to show profit at least 8% , if he is showing profit less than 8% then he has to keep Books of A/c and also need to get his books of A/c audited
My Views are
1) Presumtive Taxation viz 44AD, 44AE are special Provision which are optional and not the mandatory.
2) if any taxpayer keeping books of A/cs and and wants normal provision of taxation then he is free to show any percentage of profit might be lower than 8% or more
kindly clarify following point
1) if a person having Turnover from Trading Business Rs. 31 Lac and also maintain all Books as prescribed u/s 44AA need not show profit at 8% because he is not opting Presumptive taxation for computation of income.
Some of Income Tax Practitioner are of the opinion that-
all Business cover under this section and even if assessee maintaining books of A/c he has to show profit at least 8% , if he is showing profit less than 8% then he has to keep Books of A/c and also need to get his books of A/c audited
My Views are
1) Presumtive Taxation viz 44AD, 44AE are special Provision which are optional and not the mandatory.
2) if any taxpayer keeping books of A/cs and and wants normal provision of taxation then he is free to show any percentage of profit might be lower than 8% or more
15 August 2011
Dear Shahzed,
Income tax practitioner are Right.
Even You Keep Proper Books of Accounts and Show Net Profit Less Than 8% Then Your Accounts Need to be Audited.
Regards,
Ayush Agrawal
ayushagrawal@rediffmail.com
Income tax practitioner are Right.
Even You Keep Proper Books of Accounts and Show Net Profit Less Than 8% Then Your Accounts Need to be Audited.
Regards,
Ayush Agrawal
ayushagrawal@rediffmail.com
15 August 2011
In my view 44AD is not optional.
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