Income tax related query......

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Self employed
2193 Points Posted on 30 March 2022
dear colleagues
gud mrng

ek properitory gst registerd (Composition firm hai)...
jiske Proprietor ki death April 21 me ho gyi hai
March 21 me closing stock uss firm ka approx 40 lac hai books me
Jo uski daughter or wife ne financial needs ke reason se 20 lac me sold kr diya hai
ab Fy 21-22 ka jo 1st qtr (april-june) hai usme 20 lac sales show krke 1% tax pay kr skte hai kya???

or income tax k purpose se jo Inka return file hoga AY 22-23 Ka usme 8% deemed profit declare kr skte hai kya
jisse audit ka kaa issue nhi rhe???


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On 30 March 2022 at 10:29 Report
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Quick Summary
This discussion concerns a proprietorship GST registered firm where the proprietor passed away. The closing stock was sold by the family for less than its book value. The query is whether they can show this sale in the first quarter and pay 1% GST, and if they can declare 8% deemed profit for Income Tax purposes to avoid an audit. The advice given is that they can pay 1% GST on the sale, though interest will apply for late payment. They can also use the presumptive scheme (44AD) for Income Tax by declaring over 8% profit to bypass audit requirements.

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Chartered Accountant
5010 Points Posted on 30 March 2022

Yes, you can show the sale at a lower price and pay tax under composition at 1%. 

But since you want to show the sale in 1st quarter and tax has not been paid to date, interest on late payment of tax will apply. 

Yes, you can claim the profit under presumptive scheme 44AD and show a profit of more than 8% to save the audit compliances. 

 

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On 30 March 2022 at 11:17
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Self employed
2193 Points Posted on 30 March 2022
Ohhk thankyou so much Puja mam for your valuable guidance
mam gst me late payment per kitna interest hai shyd 18%??
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On 30 March 2022 at 19:00

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