I have 40 lakh of sales and declaring net 12-13% profit (after employee expanse) as per presumptive scheme
But
My CA told that you should not claim employe expanse of 9,000 per month total 1,08,000 ₹ per year and may get scrutiny?
I told , I'm paying in cash and as per rule it's below 10,000 ₹ expanses and paying monthly in cash
So why this is not allowed , any specific cases where it was not allowed?
Please share your experience
The presumptive taxation scheme under Section 44AD of the Income Tax Act allows for a deemed profit of 8% of turnover (or 6% if turnover is via digital means for businesses with turnover upto two crores). For businesses opting for thi scheme: expenses are not separately claimed or deducted.
The scheme simplifies tax computation based on turnover.
Thank you sir for replying
So it could be normal filing as we not needed audit and showing balance sheet and everything in ITR 3
He claims transport expanses , depreciation of vehicles and furniture, other charges in ITR as I checked so can we also claim my employee expanse of 1,08,000 yearly?
Hello please share your view for 2nd leg query..
Please reply for this sir...
CAclubindia
