Query on Section 44AD


Sayyed mohammed Shahid (CA - Article)     11 July 2019

Sayyed mohammed Shahid
CA - Article 
 1 likes  33 points

| My Other Post

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?

1 Like

Sundararajan S (Final Student of ICAI)     11 July 2019

Sundararajan S
Final Student of ICAI 
 114 likes  1760 points

View Profile | My Other Post

Exactly. you can show a percentage greater than 8. law says minimum of 8 is to be shown.

1 Like
avater

rama krishnan   11 July 2019

rama krishnan

 842 likes  9010 points

View Profile | My Other Post

agree with Mr sundar

avater

Mujeeb rahuman (Audit assistant)     12 July 2019

Mujeeb rahuman
Audit assistant 
 3 likes  99 points

View Profile | My Other Post

net presumptive income u/s. 44AD means

actual higher income declared


if net income is higher than 8 % , we should declare net income as presumptive income after addition inadmissible expenses and 20% or 25% of personal uses


Leave a reply

Your are not logged in . Please login to post replies

Click here to Login / Register  



Popular Discussion


view more »