Shivam tara (Senior Finance Executive) (28 Points)
09 December 2011Does "Gross Turnover" u/s-44AD includes the sum of turnover of all businesses of assessee including any speculative business? Also if the actual income of the assessee is more than 8% of gross turnover and his turnover does not exceed the specified limit, whether the assessee can still pay tax on only 8% of gross turnover i.e on lower rate of income?
CA Sandeep Kumar
(Audit Assistant)
(804 Points)
Replied 10 December 2011
Presumptive Income is based on specific business, and not assessee based. So while calculating the 60 lakhs limit, all business's turnover should not be clubbed.
In case the profits actually are more than 8 % , then the assessee has to pay tax on actual profits and not on presumptive basis.
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