Income tax on sale of agri produce

As per your transaction mode its not Katcha arhatiya. You will have to prepare accounts and get then audited as your profits are less 8%. You will have to file ITR 4.

Thank you sir. Is there any way to file return without audit?

Thank you sir. Is there any way to file return without audit?

The way out is assessing income u/s. 44AD with just 8% (6% for digital receipts) profit upto turnover of 2 Crs. No need to maintain books of accounts.

Even bifurcating business in two operations one as commission (katcha arhatiya) and another direct trading (pucca arhatiya) can reduce turnover to great extent.

is it not required to get audited if I opt for 44AD? I dont have purchase patti (bills) for FY 14-15, 15-16. I am thinking to make new pattis for the said years now & accordingly assess the income. My product (maze) is exempted in karnataka vat so shall i get my returns filed now 7 then on that basis assess the income under 44AD?

Kindly guide me sir.

Sir,

Thanks for guiding me. I read section 44AD but found that this is not applicable to agency &business earning brokerage ( comission) income.

Still ist advisible to file return under 44AD?

@ Vaibhav : as yours transactions are not of commission nature, but as trading/business, section 44AD can be applied if turnover below 1 Cr. (for previous years), but you will have to declare minimum 8% profit.

@ Tapas Das: Long term capital gains around 22 lakhs, if not claimed exemption u/s. 54/54EC etc., tax liability @ 20.6% comes to about 4.60 lakhs.