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Sec 44ad digital mode

Others 384 views 7 replies
sir my client bank statement has credited by way of cash deposit by some party's , total cash deposit credit, cheque, neft has totally around RS. 79 lakhs fy 18-19. can I use 44ad @ 6 percent ?
cash deposit by some partys are allowed to use 44ad 6 percent?
pls guide sir
Replies (7)
No... Cash deposit is not a digitally receipt...
Yes. you can.
do one thing.
1. make a total of deposited amount by way of cheque, neft or some digital mode and show them @ 6%.
2. in the case of cash deposit you can show them @ 8%.
enjoy the life😄
Suppose out of 79 lakhs, 43 lakhs are only neft, cheque so use 44ad 6 percent ?
Yes... You can seggregate the deposits as Cash and Other than Cash.
After that Calculate 6 percentage to Other than cash mode
&
8 percent to Cash Mode...
Ok sir thank you very much
You are most welcome
44AD does not mean simply 6% or 8%

44AD requires that 6 or 8% as minimum profit to be declared or actual profit whichever is higher.

So do not exactly stick to that %age level.

If in reality it is more, then go for that profit figure.

Segregation is must as that break up of turnover is required to be filled in ITR.


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