Become a Govt. Certified GST Practitioner in just 60 hrs. Register Now!

Sec 45ad

osman (Income Tax & Sales Tax Consultant) (38 Points)

03 March 2012

My Question is for Small Traders,whose Business Turnover is , Below Rs.15,00,000/ Per year,can declare more than 8% as per 45AD, So he can File Return

Reply
Follow
Share

6 Replies

kavita rani (article assitant. doing MBA) (46 Points)
Replied 03 March 2012

I think The Sec is 44AD ..

Upgrade to CAclubindia Pro. Subscribe Now!

Dintakurthi Tirumala (CA FINAL) (15994 Points)
Replied 04 March 2012

Yes he has to offer his income under section 44AD. If his Gross Total Income as per section 44AD is more than basis exemption limit then he should be file income tax return other wise no need to file if he wants he can file his income tax return at his option but not must.

OM SAI SRI SAI JAI JAI SAI

SIDDHARTH KOTHARI (N.A) (280 Points)
Replied 04 March 2012

SECTION 44AD WILL APPLY AND NOT 45AD!!!

Anooj (Chartered Accountant) (2130 Points)
Replied 05 March 2012

I think u got it wrong. the section that applies is 44AD

osman (Income Tax & Sales Tax Consultant) (38 Points)
Replied 05 March 2012

Sorry I mentioned wrong Sec45ad instead of 44ad

Upgrade to CAclubindia Pro. Subscribe Now!

C.P.CHUGH (TAX CONSULTANT) (93 Points)
Replied 05 March 2012

Answer is simple YES. Section 44AD mandatesa minimum profit of 8% and there is no limit for maximum profit. One can report 100% of his receipts as income (as in the case of commission income, where generatlly there are no expenses attributable to income).