i am a bussiness man, gst is taken (composition).i am paying 5 % slab goods while purchasing goods &while selling it i am paying 1% tax because of opting composite , @ end of the year we r showing 8 % net profit in itr,here i am earning not even much ,which I am paying as a taxes to the government.
Here my question is shall I show profit ratio less than 8 %.
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is it possible to show profit in itr below 8%
Replies (3)
Well in that case you will be liable to get your accounts tax audited u/s 44AD
Maintain books of accounts and get them audited under income tax act if your income exceeds the basic exemption limit.
yes you can show less than 8%provided if you receive your turnover through bank then you can show 6%of turnover as net profit and if not and still if you want to show less then you need to maintain books of accounts and get tax audit done through CA.
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