Hi, One of my new client, has ratial business,He has done bank transaction of 47.81 lakh.(47.81 lakh debit 47.80 credit).
He is not maintaining books of account and maximum transaction is through UPI, for business and personal purpose .
Using 8%/6% income method ,how to file the return so taxable income comes under 12 lakh limit.?..he has no accounting data for that 47 lakh.
To file ITR-4, you must first isolate the actual business receipts from the total bank transactions. Apply the 6% presumptive rate to digital/UPI business receipts and 8% to cash business receipts. You cannot artificially lower the income to stay under the 12 lakh limit; if the resulting taxable income is higher, it must be reported accurately. If the client insists on declaring income lower than the presumptive rates, they must maintain proper books of account and comply with audit requirements under Section 44AB.
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