Income from business under section 44 AD provides for computation of income @ 8% of the total turnover or gross receipts and 6% in case of amount of such turnover or gross receipts received through acount payee cheque, bank draft, ECS during the previous year or before the due date as per 139(1). Thus, the provision provides for tax @ 6% for part of turnover for which amount is received in e-mode (non-cash). However, it makes clear that the provision of 6% is applicable for amounts received till 31st July 2017 in case of no-audit cases for turnover till 31st March 2017, but in case the debtors are pending for realisation till 31st July 2017 than this provision shall not be applicable and the balance turnover shall be taxed at 8% even though the realisation takes place in e-form after due date of submission of ITR. If anyone has any other view, please do share on the issue.
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Presumptive income from business- new scheme
Replies (4)
You are correct....... 6% for anything realized before filing return, all pending payments would be assessed @ 8%.
IF FOR EXAMPLE TURNOVER OF CLIENT IS RS. 5 LACS CAN HE OPT FOR DECLARING HIS CASH SALES OF RS. 2 LACS @ 8% And his sales of 3 lacs @ 6% amount received vide cheque / neft / imps. ELSE HE HAS TO EITHER FOR ANYONE 6% OR 8%?
PLEASE REPLY
HE CAN OPT FOR DECLARING HIS CASH SALES OF RS. 2 LACS @ 8% And his sales of 3 lacs @ 6% amount received vide cheque / neft / imps.
There are two different columns in ITR for such differential declaration.......
THANKS SIR
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