I had a client who wants to fill his ITR
He is doing the business of Milk collecting from small milkers and gave them to milk factories.
Its actually a milk collection centre but the payment is made to him by the factories and he distribute it in the small suppliers.
His total sale for the year is around 50 Lacs
Please suggest me if he is eligible under section 44AD or there is some other way to show his income under some other section without writing books of accounts.
Thanks in advance
The business seems to be trading in nature, as the assessee is not producing anything, hence the Section 44AD can be applied if his total gross sales don't exceed Rs.60 lakhs.
But if you want to show lesser profit than @ 8%, then you are required to prepare the whole profit & loss account & balance sheet.
Advice : file under section 44AD for being on a safer side.
I think your client is working like a middleman & as u said his total sale is excedding Rs 40 lacs then as per explainaton to sec 44AD in clause b (ii) your client doesnt fit in the definiton of elgible business since it is exceeding Rs 40 lacs as mentioned therein.
This is my view wait for other members on club to comment .Correct me if i am wrong.
Mr. Tushar, the amount u/s 44AD has been raised to 60 lacs from 40 lacs by the Finance Act, 2010.
Yes, Mr. Tushar Vikas and Sangeet are right the has been raised to 60 lacs from 40 lacs
Thanks everyone but plz do comment if you have other suggestions
I think the query has been resolved...
I think there are professionals who can suggest other ways.................by which income can be reduced without preparing P&L.
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