Income tax filling

Others 248 views 3 replies

B.R.Vinod kumar

Accounts Manager

276 Points Posted on 02 November 2019

Dear sir,

I have one question on consultancy bookkeeping For eg. Person dealing in Auto Consultancy. They dealing 100 clients in the year, like 30000x100= 3000000/-.and government fees and dealers payment is 29000x100= 2900000/- so overall margin income in this business is 100000/- in this situation how to calculate income tax? (note 3000000 cash deposits in bank and same withdraw in cash).

Note : in GSt showed 100000 is the income and paid gst.

Please any one provide a solution.

Replies (3)

vijay savant

7 Points Posted on 02 November 2019

GST TURNOVER LIMIT 20 LACS IN F.Y.2018-19 & F.Y.2019-20 LIMIT 40 LACS... YOU ARE COMMISSION PERSON... YOUR INCOME NOT LIABLE IN TAX BECAUSE OF YOU ARE PURCHASE 2900000 & SALE 3000000 NET PROFIT 100000... LIMIT OF F.Y.2018-19 300000...

Kapadia Pravin

17264 Points Posted on 03 November 2019

Can you tell how the auto consultant is raising tax invoice ? I mean break up and descripttion .

How come you receive all in cash and then deposit in bank and thereafter withdrawing almost 97% cash

Bookkeeping is receipt and payment through cash but......
any cash payment to dealer in excess of 10000/- per day is disallowed under ITax.

What is break up of Govt payment and Dealer payment ?
Do you want to know bookkeeping entry or tax implications ?

B.R.Vinod kumar

Accounts Manager

276 Points Posted on 03 November 2019

Hi, Vijay savant sir, thanks for your response. In income tax as sole proprietorship how to file the tax returns in this situation, can you explain, if i show 100000 in income tax. Any notice will come against bank transactions. Kindly please advise .