Respected Sir,
For commission income we cannot opt sec.44ad and 44ada. We have to file ITR 3 showing it as business income. My questions are:
1. At how many % of profit we should declare for commission income?
2. When liability arise to gets books of a/c audited in case of commission income?
Kindly reply as soon as possible.
1. Anything between 25 to 50%, sometimes even more..
2. For total receipts of 1 Cr. or more...
1. It is true that sec 44AD and sec 44ADA cannot be opted for income in the nature of commission income as per sec 44AD(6).
2. There is no % specified for declaring commission income, actual expenses incurred for earning the above commission income will be allowed as deduction while arriving at the profit.
3. It is covered under business by virtue of sec 44AD(6) and T.O limit for the purpose of tax audit under sec 44AB is Rs. 1 crore.
Please correct me if the above interpretation has an alternative view.
CAclubindia
