TDS on Property 26QB ()

1. Yes.

2. Both option available.

@ Honourable Dhirajlal Lal rambhia sir, Tax audit


Mrs neethu Kumari a business lady involving a mid business activities....

Turnover ( sales) RS.1 crore 50 lakh

total receipts from cash transactions RS 58000

total receipts from banking digital transactions RS 1 lakh


total payments through cash 40 thousand

total payments through online 25 thousand


Query:

1. Now neethu Kumari if she wants to opt sec44AD means presumptive taxation scheme she can opt??? because her turnover up to 2 crore...

suppose she want to show profit means which percentage have to show. % ??


2. here cash transaction and banking transaction have to separate % to show??? how much percentage



HONOURABLE sir, firstofall for tax Auidt what are the items I have to check for workings



please clearly explain me..

1. Read sec. 44AB of IT act carefully...

2. As per subsec. 44AB(a), if the assessee doesn't opt for presumptive assessment tax audit will be applicable (limit ONE crore crossed)

3. If she opts for presumptive assessment then tax audit applies in case she declares less than 6% of transaction received through banking mode and less than 8% on cash transactions. [Sec, 44AD(4) & (5) in combination with Sec. 44AB(e)]

4.  Yes. Cash transaction & bank transactions to be declared separately.

In the referred case minimum profit should be 58 thousand * 8% +++ 1 lakh * 6%, (i.e Rs.10,640/-) otherwise tax audit mandatory.

 

Sec 44ad does not apply here.
The assesse is not opting for that.