Computation of income

483 views 5 replies

pyush

Student CA Final

81 Points Joined July 2015

Dear When gross receipt is 55,00,000 of retail trader and he want to adopt sec 44ad then what is income. Can he avail deduction u/s 80c upto ₹1,50,000?Then how much tax payable ?

Replies (5)

Ravi Kumar Mahaur

CA-FINAL

202 Points Joined August 2010

Applies to:

Any eligible assessee engaged in an eligible business. Eligible assessee is defined as an individual, HUF, resident partnership firm, but excludes an LLP under the LLP Act, 2008 and any assessee who has claimed a deduction under sections 10A, 10AA, 10B, 10BA or heading C of Chapter VIA (sections 80I-A, 80-IB, etc.)

Deemed Income:

8% of the total turnover or gross receipts of the assessee on account of such business or any higher amount voluntarily declared by him shall be deemed to be his income chargeable to tax.

Therefore, your taxable income would be 8% of Rs.55 lakh (Gross Receipt).

And you can avail deductions under chapter VI A (i.e, 80C to 80G)

Rashi Bajaj

752 Points Joined January 2012

Income is as stated by Mr. Mathur.

Deduction u/s 80C can be availed to the extent of Rs. 2,00,000/- in your individual return. Assuming you are a sole proprietor, yes you can claim such dedction on TOTAL Income. i.e.

Income from business(55lacs*8%)+Income from other sources(interest, etc)

ch durgaprasad

Assistant officer in ultratech cement lt

105 Points Joined January 2010

Yes u can avail the exemption

Vishal Goel

Chartered Accountant

1693 Points Joined April 2014

Hello @ Rashi

As per your comment, Deduction u/s 80C can be availed to the extent of Rs. 2,00,000/- in your individual return.

I think it is wrong..

Total Deduction under section 80C, 80CCC and 80CCD(1) together cannot exceed Rs 1,50,000 for the financial year 2014-15 (assessment year 2015-16).