Section 44ad

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Querist : Anonymous

Querist : Anonymous (Querist)

20 December 2011 IF GROSS RECEIPTS OF CLIENT DOES'NT EXCEED 60LAKHS IN THE LAST PREVIOUS YEAR ONLY BECAUSE OF THE BILLS RECEIVABLE WHICH ARE ADJUSTED AGAINST THE GROSS RECEIPTS OF THE PREVIOUS YEAR DEN THE EFFECT IS TAT THE RECEIPTS OF THE CLIENT DOES NOT EXCEED 60LAKHS BT ACTUALLY RECIPTS ARE MORE THAN 60 LAKHS. SO CAN TAT ASSESSEE BE ELIGIBLE FOR SECTION 44AD OF THE INCOMETAX ACT1961??

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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08 March 2012 IN CASE THE CLIENT IS FOLLOWING MERCANTILE SYSTEM, THEN THE RECEIVABLES WOULD HAVE ALREADY BEEN PART OF THE RELEVANT YEAR'S GROSS RECEIPTS OR TURNOVER.
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DURING THE YEAR 2010-11 SALES MADE IS 48 LAC. OUT OF IT RS.3 LAC HAS STILL NOT BEEN RECEIVED. AMOUNT CONSIDERED FOR 44AD IS 48LAC.
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IN THE ABOVE EXAMPLE -RS 15 LAC RECEIVED FROM RECEIVABLES OF FY 2009-10.AMOUNT CONSIDERED FOR 44AD WILL BE RS.48LAC ONLY.
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IN SUCH A CASE ASSESSEE IS AN ELIGIBLE ASSESSEE U/S 44AD.

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