Help ! a/c entry

You dont have to match your book profit with Income Tax profit. Profit as per books & as per Income Tax are two different things. Income Tax profit is just for calculating tax liability. So, no accounting entry would be require to pass in the books.

Situation 1: Your client opts for Audit. Net profit upon which he has to pay tax would be around Rs. 2,20,000 (after deduction Rs. 50,000 Audit Fess aprrox.).

Situation 2: He opts for 8 % of Turnover. Now, he has to pay tax upon profit of Rs. 5,28,000; which means obviously Income Tax department is getting more tax than Situation 1; so no need to pass any entry for the difference. Income Tax department will be happy if he opts Situation 2. :D

Thanks Both @ MrPankaj & @ MrAshish,

It means we need to file Income Tax Return u/s 44AD in Form 4S (Sugam),

or there is any possibility to file Return in Form4

Please correct me,

Thanks

You may file Income Tax return in any of the form. The only difference is, in Form 4S you don't have to submit balance sheet & P & L a/c.

It would be better if u do Tax audit

There is no need to make any accounting entry if u file ITR4S 

In case of ITR4 make a provision for current tax

Dear Sanket,

I wish to file Form4

Please let me know the desired A/c entry 

Thanking You,

Thank you all for your valuable advise :) 

Dear Deepak

If you show book profit less than 8% on gross receiopt ( up to 1.00 crore), than tax audit is compulsory so you can't file ITR U/s 44 D.

In your case ITR can't be file U/s 44AD

Thanks

Dear Deepak

If you show book profit less than 8% on gross receiopt ( up to 1.00 crore), than tax audit is compulsory so you can't file ITR U/s 44 D.

In your case ITR can't be file U/s 44AD

Thanks

Dear Satish Sir,

Thanks for your reply, But if you noticed i already mentioned the Gross Receipts (66Lcs) in my Query,

Regards

Deepak Sharma

If you file ITR U/s 44AD, you have to show minimum 8 % Book profit i.e. Rs. 528000/-( 8% of 6600000/-), if book profit less than Rs. 528000/- than tax audit will be compulsory

Thanks