Sec 44ad of income tax act, ay 2011-12

SHARIQUE TAHSEEN (OWNER) (57 Points)

22 March 2012  

Dear frnds,

One of our client is a partnership firm, engaged in construction (residential complex) industry. For the FY 2010-11, the firm has followed presumptive taxation as per sec 44AD. They have not deducted TDS on the sub-contract work's payments. No advance tax is paid. Their total turnover is Rs.47 lacs for the fin year 2010-11.

Kindly clarify, whether directly applying 8% on 47 lacs and arriving at taxable income of Rs.3.76 lacs as profit is correct, or, on that 3.76 lacs we need to add the tds non-compliance disallowance.

Its urgent Pls reply.