How to compute the milk distributor income

Tax planning 983 views 1 replies

Dear Sir's ,

    I had filed Income Tax of  one of my uncle who have a business milk distributor agency ...His total deposit in his accounts approximately more than Rs 6 crore and withdrawal more than Rs 4.5 crores .Like we know this business having income on comiision basis ..like Rs 1 or 1.50 /- per litre .. So i had computed his income like Rs 6.5 total deposit divided by purchased price of per litre of milk Rs 37/- ( 65000000/37=1756756.75 total milk distributed of the year then I multiply with 17,56,756.75 * Rs 1 per litre of milk ...so his  gross revenue comes to Rs 17,56,725,/-  and then filed the return as per  U/s 44AD 8% of total turnover No books of Accounts maintaned ...My Question is that whether I ahd filed  on a right way or its required to be audited this accounts....

 

Replies (1)
It is better to get ur uncle accounts to be audited

You should be in a position to explain the source for the cash deposits
And you also need to obtain confirmation from the parties for the cash deposits


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