Save Rs 499 on a 2-Year Ad-Free CAclubindia Pro Membership. Subscribe Now!

Profit Calculation

306 views

Save Share

Sukumar Das

19 Points Posted on 30 March 2021

Dear Sir/ Madam,

in the F.Y 2019-20 My Profit Is Below 6 % Of Turn Over and the Turn Over Is same as GST but the audit has not been done with in specified period and all the transactions are from bank and few were in cash.So, Now in this situation I want to File My ITR Can You suggest the way to file the return in proper way.

Thanks and Regards

Replies (3)

Quick Summary

This discussion addresses how to file an Income Tax Return (ITR) for FY 2019-20 when profit margins are below 6% of turnover. It suggests filing ITR-4 under presumptive taxation (Section 44AD), with different profit percentages for banking and cash transactions. Crucially, it highlights that a profit below 6% necessitates a tax audit under Section 44AB, which may be required even with a day left for filing.

CA Akshay Poriya

job in industry

329 Points Posted on 30 March 2021

As per my opinion you filling itr - 4 return showing profits 6% on turnover as a transactions with banking channles and 8% on turnover as a transaction in cash under a prusmptive income . here is only one day left for filling of itr so compute tax liability and paid though challan and filling return

CA. Sourav Sarkar

Chartered Accountant

24588 Points Posted on 30 March 2021

File ITR 4 and audit is required as Profit is less than 6% of turnover which is lower than deemed income. It is presumptive taxation basis u/s 44AD and tax audit is applicable u/s 44AB