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How to save profit in proprietorship

Others 255 views 7 replies

Anmol Mehta

5 Points Joined January 2017

I have started Proprietorship firm and start doing business on amazon india i deal computer networking parts .

i 've started it on Aug 13th 2016 & also filed sale tax in every quarter and now i want to save profit the profit amount as my personal money so please tell me what is the correct & legal process ?

Replies (7)

Suresh Pai S

Tax Consultant

1029 Points Joined March 2012

What is the estimated profit for the financial year ending 31.3.2017?

Suresh Pai S

Tax Consultant

1029 Points Joined March 2012

Assuming that you are an individual who does not have any other income other than above;

You will be exempted from paying of income tax if your profit computed as per the provisions of Income Tax Act ,1961 does not exceed Rs 250000/-

Anmol Mehta

5 Points Joined January 2017

Profit is around 2.5 lac .

Kindly let me know the process if the profit is above 2.5 lac ..

Suresh Pai S

Tax Consultant

1029 Points Joined March 2012

You can claim any deductions and rebates available as applicable.

Suresh Pai S

Tax Consultant

1029 Points Joined March 2012

You need to pay tax @ 10% for the total income exceeding Rs 250000 up to Rs. 500000 and needs to file the return of income.

Anmol Mehta

5 Points Joined January 2017

So you mean 10% Amount & return of income are two different things ?

It would be really helpful if you explain what is "filing the return of income " if my profit is 250000 - 500000

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