What should i do in case of no bills

Hi there, i have a business of shoes and accessories  and spend 225000 on my employees but honestly speaking i did not earn more than 15000 per month, however my long term planning is to make it a big brand, for now i do not know what to say to income tax department if they ask that where i got 225000 per month in case i m earning only 15000 per month, as of now i do not have bill as i sell shoes of less than 300 rupees, plz tell me what to do now plz plz..... My earnings are 180000 yearly, and now if i show them 8% of profit presumtion then wouldnt income tax department ask me about the salary of the employees, that is 225000*12= 2700000, and i would deduct tds from their salary then even department will ask me for this however i would pay the TDS for sure, but wouldnt it raise new points... so that they can bring me under scanner.

Replies (2)

Pl explain your query.

When you say that you earn Rs 15000/-P.M. does that mean that yout turnover is Rs 15000*12=180000? 

OR

Rs 15000*12=180000 is what is left after deducting all expenses(eg salaries225000 and purchases)?

You can show profit @ 8% of yout TURNOVER(Sales) and you don't have to maintain books of accounts in that case.

 

In case your turnover is 1,87,500 P.M (15,000/0.8) you should opt for 8% scheme as suuggested by madhavi..else go for audit of accounts..

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