Hi
For AY 2011-12, having chosen the presumptive income criteria which allows assessee to declare a income of over 8% of "Turnover" , what would be position if the taxable income taking into account disallowances and adjustments from sec 28 to section 40(b) is actually more than the presumptive income? Can the assessee limit his taxable income to say , 8.5 % , thogh it is less than taxable income as computed under existing provisions.
Thanks for your views.
IN MY OPINION IT IS BETTER TO PREPARE THE ACCOUNTS IN CASE OF PARTNERSHIP FIRM.
BEACUSE ITR DOES NOT MAKE ANY DISTINCTION BETWEEN THE SALARY TO PARTNERS AND SALARY TO EMPLOYEES.
THEREFORE PROFIT BEFORE SALARY CAN BE MORE THAN 8% BUT AFTER PROVIDING THE SALRY TO PARTNERS IT CAN BE LESS THAN 8% AND NO AUDIT IS REQUIRED.
Gdm dear ,
if we have profit more than 8% ,
and total turnover or gross receipt dn't exceed Rs. 60/- lakh
no need for Audit.
Yours
Ashutosh Bhardwaj
Under presumptive income for partnership firm, is it necessary to fill up balance sheet and profit and loss account in ITR-5
where gross receipts and 8 % on that as profit need to be shown in ITR-5
I am of the opinion that when an assessee opts for presumptive taxation books of accounts may not be maintained and hence section 40(b) specifically stated that all the allowances and expenses are deemed to given except.for 40(b) incase of a partnership firm adopting presumptive taxation. Also as said by the above member if the offered income is 8% there is no need to tax audit. Only when the income offered is less than 8% 44AB(c) applies.
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