Income tax on trading

Hello Kiran,

Plz describe the nature of trading,product.

Any expenses incurred directly or indirectly for the purpose of selling are allowed like accounting charges,freight,salary to employees,bussiness promotion expenses,depreciation,vechicle running and maintaince expense etc...

CALCULATION OF INCOME TAX ON Trading

First of all, you have to prepare the trading and profit loss acc ount for the trading. As you must be aware that, opening stock, purchases, direct and indirect expensed, sales, closong stock and other receipts are to shown in trading, profit and loss accont. Whatever the net profit shall be come, that should be considred for the calculation of income tax

C A K C AGARWAL

income can also be taxable on presumptive basis u/s 44 AD if your turnover is below 1 cr. and net profit is 8 % or more.

but if you show ur profit below 8% than you need tax audit u/s 44 AB