I wish to clarify the following point : 

4. No separate deduction will be allowable u/s. 30 to 38 .......OK

and

no disallowance will be made u/s. 40 to 43D. This means that even if assessee does not deduct TDS, or makes cash payment exceeding prescribed limit u/s. 40A(3), or does not discharge statutory dues u/s. 43B, or makes illegal expenses under Expln. to section 37; no disallowance will be made for same.

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The above is "wonderfully" correct. 

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Such friendly provisions were never before for small assessees. 

Planning  Hints :

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1.  The assessee should keep a "SCORECARD" of SALES every month. 

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2.  The moment sale goes Rs.2 Lacs or above per month; the assessee should take care of 80C deductions. When Sales is Rs.24 Lacs per annum, presumptive profit at 8% is Rs.1,92,000/-

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3.  When sale reaches Rs. 40 Lacs, the assessee's presumptive profit will be 3,20,000/- where tax is 14,000/- for current year. He may plan for  more deductions u/s 80C. 

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4. Assets which are nature of high rate of depreciation involving high amount; should be avoided to take under such firms if it is possible. 

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5. Very Important : 

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When sale crosses 50 lacs; the assessee should appoint one accountant to maintain books of account to avoid heavy taxation.

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If books of account are not maintained; 8% profit is Rs.4 Lacs hence tax is Rs.22,000/-. Hence it is advisable to small assessees to be aware of such provisions. 

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This is important because generally small businessmen will not think to maintain regular books of account.

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But when sale crosses Rs. 50 lacs or 60 lacs; then they are required to get their books of account audited either to save taxes by showing lesser income  or when it becomes compulsory to get it audited. 

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Assessees who have 3 members in his family ( we can't say it a family if  3 members are not there ) and having sale  upto Rs. 1.00 crore can plan to open 3  family firms and avoid unnecessary maintenance of books.  Also they would be relieved from  various typical provisions of Income-Tax.

Dear CA Navin Jain Sir,

                                          I want clarification about point no.2 which you have mentioned.

The assessee has to get his accounts audited as soon as his turnover crosses 60 Lakhs and he cannot avail the benifit of 44AD.

Kindly clarify.
 

If trunover is exceed to Rs. 60 Lacs then provision of Sec 44AB is applicable.

Thank you very much sir...

GOOD EVNG NAVINJI,

                   THANKING U FOR SHARING WITH US ABOUT U/S 44AD,

        IN THIS CONNECTION I WANT A CLARIFICATION THAT IN THE ITR 4 SOME OF T.R.P'S

 ARE ENTERING ONLY " GROSS RECEPTS, GROSS PROFT, EXPENSES & NET PROFIT ONLY"

 BUT SOME  T.R.P'S ARE COMPLETELY FILLING ALL THE PROFIT & LOSS ACCOUNT AND BALANCE SHEET WITHOUT MAINTAING BOOKS WHICH IS CORRECT" PLEASE GIVE ME A CLARIFICATION, BASICALLY I AM ALSO ONE OF THE TRP.- MARUTHI RAM  

Keep sharing information like this Sir. It helps alot.

Thanks alot.

Originally posted by : CH.MARUTHI RAM
	GOOD EVNG NAVINJI,                    THANKING U FOR SHARING WITH US ABOUT U/S 44AD,         IN THIS CONNECTION I WANT A CLARIFICATION THAT IN THE ITR 4 SOME OF T.R.P'S  ARE ENTERING ONLY " GROSS RECEPTS, GROSS PROFT, EXPENSES & NET PROFIT ONLY"  BUT SOME  T.R.P'S ARE COMPLETELY FILLING ALL THE PROFIT & LOSS ACCOUNT AND BALANCE SHEET WITHOUT MAINTAING BOOKS WHICH IS CORRECT" PLEASE GIVE ME A CLARIFICATION, BASICALLY I AM ALSO ONE OF THE TRP.- MARUTHI RAM

NO NEED TO FILL ALL THE DETAILS AT ALL.

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I  presume they are filing the return in Manual Form.

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If you use a software; it will not accept Form No. 4, it will automatically converts it into Form 4S. 

GOOD EVNG SIR,    THANKING U SIR  HELPING ME TO MOVE IN A RIGHT WAY - MARUTHI RAM

Sir, if  Vat Payable is not paid in time , then it will not be disallowed u/s 43 B if assesse declares his income u/s 44AD. Clarify  Sir...

Originally posted by : Bhavesh Manilal Patel
	Sir, if  Vat Payable is not paid in time , then it will not be disallowed u/s 43 B if assesse declares his income u/s 44AD. Clarify  Sir...

As per provisions of Sec 44AD.....assumed that the turnover declared is inclusive of disallowed amount As per Sec 40, 40A, 43B....!!!

thnx for the information