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Can a assessee change rate of profit percentage

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Singh Kamboj

410 Points Posted on 12 August 2020

a assessee file ITR 4 and show net profit @ 70% in his last two returns but in the present return he wants to change his profit percentage and wants to show net profit @ 45% of gross profit. can it is possible and he can not bear any problem in future.

Replies (3)

Quick Summary

This discussion explores whether an assessee filing ITR-4 can change their declared profit percentage from 70% to 45%. While it's generally possible to adjust profit margins, it's crucial to ensure the new percentage doesn't fall below the minimum rates prescribed under presumptive taxation sections like 44AD or 44ADA. Failing to adhere to these limits could lead to future complications.

Sagar Patel

Tax and Business Consultant

11616 Points Posted on 12 August 2020

Yes, you can change your profit %, but it can not be a below the minimum % prescribed under relevant section of Presumptive Taxation.(i.e not below 6%/8%/50% as the case may be)