Status of msme under income tax
This query is : Resolved
Ruchi Agrawal
(Querist)
08 October 2011
What will be the Status of MSME under Income tax. I mean to say will it be a company or proprietorship. Which form of income tax return will be applicable for MSME. Is Tax audit will be required.
Can MSME file return on non accounting basis too?
Can MSME file return on non accounting basis too?
Rajagopalakrishnan R
(Expert)
09 October 2011
U need to look at the provisions of the Income tax act stand alone. Whatever privileges etc enjoyed by MSME's do not automatically translate into benefits under Income tax Act.
The legal constitution of the MSME will determine its status under Income tax Act.
Tax Audit will be applicable if
Turnover exceeds 60 lakhs or
Turnover is less than 60 lakhs but profit shown is less that 8% of turnover( in case of Eligible aseessees & Businesses Only)
By "Non Accounting" if u mean return under Presumptive taxation without maintaining books of accounts, then answer is yes for all types of assessees except companies.
The legal constitution of the MSME will determine its status under Income tax Act.
Tax Audit will be applicable if
Turnover exceeds 60 lakhs or
Turnover is less than 60 lakhs but profit shown is less that 8% of turnover( in case of Eligible aseessees & Businesses Only)
By "Non Accounting" if u mean return under Presumptive taxation without maintaining books of accounts, then answer is yes for all types of assessees except companies.
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