Problem in calculating Business income under proper section

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.