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Goldsmith income

21 January 2019

Goldsmith income(making charges)comes under which category
i mean professional income under 44ada and tax @ 50%
Or business income under 44ad @ 8%

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MOHAMMED IMRAN (1020 Points)
Replied 21 January 2019

goldsmith is not covered under specified professions
so, he is liable to pay tax under presumptive taxation scheme, if his total turnover / gross receipts of upto rs 200 lakh (2 crore )[section 44AD]

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hitesh gupta (24 Points)
Replied 21 January 2019

thank you, but how to show closing stock, they would only have gross receipts right?

MOHAMMED IMRAN (1020 Points)
Replied 21 January 2019

can you please elaborate the above, I don't get it

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hitesh gupta (24 Points)
Replied 21 January 2019

i mean trading account i cannot prepare right? Directly on gross receipts 8 % i have to show income?

MOHAMMED IMRAN (1020 Points)
Replied 21 January 2019

yes, you are not required to maintain books of accounts u/s 44AA or get them audited u/s 44AB (if you are eligible for section 44AD)
presumptive rate of tax would be 8% of total turnover or gross receipts
it can reduce to 6% of total turnover or gross receipts if all the transactions made through
1. by an account payee cheque OR
2. by an account payee bank draft OR
3.by use of electronic clearing system through a bank account

on the above, tax liability is calculated as per your slabe rate

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