Urgent-Business Profit more than 8%-What to Do

Hi Snehal,

You can declare a profit above or equal to 8% of gross receipts and file your return before 31st July. Tax audit is necessary only if the profit is below 8%. Also if you declare such profit u/s 44AD u don't have to maintain books of accounts as prescribed u/s 44AA becoz the limit specified in sec. 44AA to 44AB is not applicable to an assessee declaring profit u/s 44AD.

BUT BE CAUTIOUS OF IT DEPT. BECOZ THE CURRENT PROFIT IS ACTUALLY 94% OF GROSS RECEIPTS!!!!! SO DO DECLARE A PROFIT WHICH IS NEARBY THIS FIGURE........

You can also take expert views and comments on this matter...

Regards,

Suraj

Originally posted by : Suraj (Thirsty for KNOWLEDGE)
	Hi Snehal,   You can declare a profit above or equal to 8% of gross receipts and file your return before 31st July. Tax audit is necessary only if the profit is below 8%. Also if you declare such profit u/s 44AD u don't have to maintain books of accounts as prescribed u/s 44AA becoz the limit specified in sec. 44AA to 44AB is not applicable to an assessee declaring profit u/s 44AD. BUT BE CAUTIOUS OF IT DEPT. BECOZ THE CURRENT PROFIT IS ACTUALLY 94% OF GROSS RECEIPTS!!!!! SO DO DECLARE A PROFIT WHICH IS NEARBY THIS FIGURE........   You can also take expert views and comments on this matter...   Regards,   Suraj

Agreed . Dont worry about the I-T dept. 44AD is presumptive basis so they will not intervene in actual profit. 

Thanks for the Information!

But the problem I am facing with is that the all the entries are reflected clearly in the Bank account, though the assesse is below taxable Limit. I am worried about the Net Profit of Rs. 1,76,620/-., because the same is lying in the Bank account of the assesse as on 31-3-2011., Which she has on a later date invested in buying a property jointly with her Husband.

The expenses for the assesse is low because, she takes classess at her cleints places, further whatever she has received in cash, she got it deposited into the Bank account.

Her husband is a Doctor and he falls in 30% bracket. So I am worried that if in case his return or her returns are picked-up in the scrutiny at a later date, Can the I.T.O concerned raise any objection and will his objections be considered as valid.

Hello can anyone reply please!

Dont worry , even if the ITO scrutinise the return he can't go against the law. even if the income rate is too high .

Relax

:)

yes I do Agree with above views.

as per section 44AD, the assessee is required to get the accounts audited only if the profit declared by him is less than 8% and the total income is more the maximum amount not chargeable to tax............therefore, no audit required as the T.I. is less than 1,90,000/-..........

no section under the income tax gives power to the A.O. to arbitrarily add the wife's income in the income of spouse....there must b an opp. of being heard..........
 

Don't worry Snehal....Relax !!!!! IT Dept. is only against those who evade tax !!!!!!!!!