44ad (can we save tax like this)

Tax queries 838 views 7 replies

john

LEARNER

554 Points Joined November 2009

Mr. A is having income total receipt from brokerage & comission (real eatate) for A.Y.2011-12 Rs.400,000/-

And TDS from his brokerage income is Rs. 18000/-

Normally his Net taxable income reduced by allowable expenses comes to 294000/- Tax there on is Rs.13802/-

and refund Rs.4198/-

BUT

IF HE OPTS The Presumptive Business Income Tax scheme and fill his Tax return with ITR-4S,

his Net taxable income can be presume at 8% ie. Rs. 32000/- and that is below exemption limit.

and he will be liable for a refund of Rs.18000/-

CAN Mr.A OPT FOR 44AD Presumptive tax scheme & claim a higher refund)

Replies (7)

CA Suresh Choudhary

Practicing Chartered Accountant

2954 Points Joined January 2009

Yes he can claim refund of 18000/- But on the grounds of morality he should pay tax on his Income. Under Sec 44AD of Presumtive income he can declare higher Income.

Mr. Johan your qry is intersting,Yes he can claim refund of 18000/- But on the grounds of morality he should pay tax on his Income. Under Sec 44AD of Presumtive income he can declare higher Income as you know at this time no person can guzra in Rs. 32000/- during the whole year

Sanat kumar

Chartered Accountant

265 Points Joined December 2009

Hi John

You can opt for sec 44AD in this case.

amit jain

Chartered Accountant

532 Points Joined July 2008

but 44ad is for persons engaged in civil contruction or supply of labour for the same..

Sanat kumar

Chartered Accountant

265 Points Joined December 2009

Hi Amit

44 AD is now changed from 2011-12.

Now it is applicable for all business.

J@$preet

Article CA-Final

149 Points Joined August 2011

It is not necessary to declare N.P Exactly 8%, u/s 44AD NP is 8% or more and in that case Audit is not required.

Sudarshan Raghavan

Chartered Accountant

108 Points Joined March 2008

section 44AD now covers all types of business excpet the business of plying, hiring or leasing goods carriages .......income will be 8% of total turnover or gross receipts or as the case may be, a sum higher than the aforesaid sum as claimed by the assessee......u can fully claim refund of TDS.....no deductions u/s 28 to 43C will be allowed.....