SECTION 44AE
This query is : Resolved
08 December 2010
I HAD A CONFUSION REGARDING BALANCE SHEET PREPARATION FOR SEC 44AE
THOUGH IS IN NOT REQUIRED AS PER INCOME TAX ACT, BUT I WANT TO PREPARE IT FOR MY SUBSEQUENT REQUIREMENT, I AM CONFUSED AS WHEN I TAKE PRESUMPTIVE INCOME, I NEED TO ADD IT TO CAPITAL A/C AND ON ASSET SIDE ACTUAL FIGURES OF BANK & CASH A/C, IN THIS CASE B/S WILL NEVER TALLY, THEN HOW TO TREAT THIS.
THANKS FOR YOUR REPLIES
THOUGH IS IN NOT REQUIRED AS PER INCOME TAX ACT, BUT I WANT TO PREPARE IT FOR MY SUBSEQUENT REQUIREMENT, I AM CONFUSED AS WHEN I TAKE PRESUMPTIVE INCOME, I NEED TO ADD IT TO CAPITAL A/C AND ON ASSET SIDE ACTUAL FIGURES OF BANK & CASH A/C, IN THIS CASE B/S WILL NEVER TALLY, THEN HOW TO TREAT THIS.
THANKS FOR YOUR REPLIES
10 December 2010
Dear, if you know the basics of accounting, you will never be confused.
You should transfer the difference between presumptive income and actual net profit to Capital Account as follows:
a) If presumptive income is less than actual net profit, add the difference to Capital Account.
b) If presumptive income is more than actual net profit, deduct the difference from Capital Account.
You should transfer the difference between presumptive income and actual net profit to Capital Account as follows:
a) If presumptive income is less than actual net profit, add the difference to Capital Account.
b) If presumptive income is more than actual net profit, deduct the difference from Capital Account.
10 December 2010
sir you mean to adjust the difference in capital a/c
11 December 2010
Yes...
Message likes :
1 times
11 December 2010
EVEN I THOUGHT OF THE SAME BEFORE BUT NOT SURE FOR THIS
THANKS A LOT SIR
THANKS A LOT SIR
11 December 2010
SIR IF WE KNOW THAT PROFIT IS MORE THAN THE PRESUMPTIVE INCOME, WHICH INCOME SHOULD WE TREAT FOR INCOME TAX PURPOSE
WEATHER IT IS MANDATORY TO GO FOR HIGHER INCOME OR IT IS UP TO US TO DECLARE ANY ONE FROM PRESUMPTIVE INCOME OR HIGHER AS PER P&L
WEATHER IT IS MANDATORY TO GO FOR HIGHER INCOME OR IT IS UP TO US TO DECLARE ANY ONE FROM PRESUMPTIVE INCOME OR HIGHER AS PER P&L
12 December 2010
Assessee at his option can declare either presumptive income or higher income. Of course it is tax effective to declare presumptive income. Don't worry if profit is higher, you can declare presumptive income.
In case you have more doubts, I suggest you to refer to the CA Institute's Member's Journal for Decemeber, 2010 to better grasp this topic.
In case you have more doubts, I suggest you to refer to the CA Institute's Member's Journal for Decemeber, 2010 to better grasp this topic.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- About TDS & Income Tax
- Scrutiny and reopening of past returns
- Pass word to open justification report for Q1 for FY 2026-27
- PPF interest-As Exempt Income disclosure
- Section 194JA & JB Income which ITR Form to use
- Type of Capital Gain
- Booth for sales promotion
- F & O PROFIT REPORTING FOR AY 2026-27
- Grand in aid
- Accounting with Claude
- TDS on Rent received on redevelopment of building
- Tax on Deemed Capital Gain
- Indian IT Portal issue in computing tax as per UK-India DTAA
- Capital Gains on sale of residential flat
- Upload Level ValidationITR3Category of Defect B/D
- PF Taxable Income
- Clarification on Tax Audit Applicability and Reporting of F&O Transactions in ITR-3
- Interest credited in FY2025-2026 & TDS therein by EPFO does not reflect in AIS or Form 26AS
- 44ad eligble money lending interest
- Taxation in the hands of Landowner under JDA
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
