if someone is trading in F&O on regular basis and he has turnover of around 50 Lacs and has actual profit of 10 lacs.
Now my question is, can he file return U/S 44AD and show profit of 8% and avoid extra burden of tax ? as Act itself allow us to show profit of 8% if turnover is below 2 Crore.
Any case law for referance?
I have calculated turnover on the basis of sum of all debits and credits in my ledger account.
| Originally posted by : Gokul Chandran | ||
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44ad for whom?Individual,HUF,Firm(except LLP),Other than export oriented business.Eligible BusinessAll business except for assessee carrying on,-agency business-income from brokerage/commission-other business which falls in 44ABPresumptive Income to be shown-8%or higher sum on the turnover(in case when assessee declares lower income he needs to carry on 44ab tax audit (44aa applies for professionals - maintenance of books of accounts)Deductions and Disallowances-All the deductions (sec 36)& Disallowances (sec 40)DEEMED to be allowed.Partners Salary and Interest on Capital are not to be included (i.e it should not be deducted from Profit)Turnover Limit-44ad is not applicable if the turnover exceeds Rs 2 Cr in the previous financial year.The assessee is required to follow and declare income as per 44ad provisionfor 5 years |  |
Assessee is individual.
I know what 44AD provision is. i just want to know weather i can show 8% profit even if my profit is 20%.
kindly give case law referance as provision is not clear on this matter.
| Originally posted by : Neha Mittal | ||
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yes u can do that bcz books of accounts are not mandatory to be prepare if u are opting 44ad and actual profit doesn't matter. min profit should be 8% | |
Thanks.
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