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Difference profit un disclosed income treated

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Kollipara Sundaraiah

B.com

3025 Points Posted on 05 February 2023

it assessess Gross receipts rs:12 lacs profit declared rs:6 lacs show in it returns as per sec 44ada provision.but profit rs:9 lacs credited by capital account in books.
question:
assessess difference profit 3 lacs undisclosed income treated in it act.

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Quick Summary

This discussion clarifies how to treat profit declared under Section 44ADA of the Income Tax Act when your books show a higher credit. If you declare the full gross receipts under 44ADA, the difference isn't necessarily undisclosed income. However, if your IT returns only show a portion of the profit, it might be considered undisclosed income, requiring an updated return.