Pratik (TP) (79 Points)
01 April 2013A Person has Truck Plying as well as Trading Business... His Gross receipts from truck plying of 2 Trucks is 47,28,432 in Bank Statement and that from Trading is 26,75,250...My Querry is
1) Whether he can show income of 120000 u/s 44AE and 8% of 2675250 u/s 44AE?
2) As his total receipts in bank account is 74,03,682 ,whether he will be liable to TAX Audit?
3)However Transport income in 26AS is 4,78,250. Is there any problem in Showing higher turnover u/s 44AE?
Nazia
(Asst Manager - Finance)
(139 Points)
Replied 01 April 2013
since individual's turnover has exceeded 60lacs, tax audit is mandatory, 44AE does not apply. There cannot two seperate assessments and returns for the same individual.
Vineet Jaiswal
(CA)
(141 Points)
Replied 01 April 2013
CA Kumar Mukesh
(CA CMA FINAL and Advance Excel Trainer)
(6886 Points)
Replied 01 April 2013
its better to disclose income For plying hiring vehicle at Rs.5,000 per month per vehicle (as per section 44AE) therefore income under this source will be 5000*12*2= 120000/-
for other business take benefit of 8% of gross amt. turnover (under section 44AD), or otherwise to get done Tax Audit under section 44Ab if profit % is below 8% for this business
Pratik
(TP)
(79 Points)
Replied 02 April 2013
Thanks a lot Mr Vineet Jaiswal and Mukesh Kumar.... I would further like to know that Should I disclose the entire turnover of Rs 4728432 u/s 44AE with profit of Rs. 120000 in return???
CA Kumar Mukesh
(CA CMA FINAL and Advance Excel Trainer)
(6886 Points)
Replied 02 April 2013
You don't need to disclose Gross turnover from vehicle& need not worry about what amt. shown in 26AS statement. You have to mention only no of vehicles you have operated during the year. Software will automatically calculate your income u/s 44AE of Rs. 120,000/-. Disclosing no of vehicle is sufficient for Revenue Department.
CAclubindia
