Dear All,
I just want your Views on section 44AD of the income tax Act 1961.
One of our colleague said that If An Assessee has income more than 8% of gross turnover and he/ she file return under section 44AD then he/she liable to disclosed actual income earned by him/her. Means assess disclosed income at 8% on gross receipts but they incurred only 50% expenses on gross receipts, so according to my colleague Assessee will be liable to pay tax on 50% not 8% on gross receipts. Is he right?
CAclubindia
