Hi Friends,
Say Client had ₹ 100 credited in Bank Ac for FY 20-21. Out of which ₹ 60 by Bank transfer/UPI/Online mode and Balance ₹ 40 by Cash deposit.
As per Sec 44AD Whether we need to consider ₹ 100 as Bank receipt and taxed @ 6% or ₹ 60 as Bank receipt @ 6% and ₹ 40 as cash receipt @ 8%.
Apart from above Cash deposited into Bank, client had ₹10 Cash not deposited in Bank FY 20-21.
Now what is the Amount for Below:
1. Bank receipt Amount @ 6%
2. Cash receipt Amount @ 8%
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Sec 44 AD Cash Receipt what to be considered
Replies (4)
Quick Summary
In my opinion,1)60 lacs @ 6% and balance @ 8% .As a result 6.8 lacs shall be deemed income u/s sec 44ad
6% on Rs.60 and 8% on Rs.40 receipt would be taxable income.
As per sec 44AD 6%/8% is levied on turnover/gross receipt,
for all the digital transactions the applicable rate is 6% i.e as per your example 60 would be taxed @ 6% and the non digital payment would be taxed @ 8% .
for all the digital transactions the applicable rate is 6% i.e as per your example 60 would be taxed @ 6% and the non digital payment would be taxed @ 8% .
60 @ 6%
and 50 @ 8% ( 40 + 10 )
and 50 @ 8% ( 40 + 10 )
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