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White or black money

karthik (k) (43 Points)

19 September 2017

Sales=1400000
Actual profit=350000
Tax paid as per 44AD @ 8%=112000
Difference amount=238000
difference amount is white amount or black amount....?

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4 Replies

Rakesh Bandal (Self Employed and Agriculture) (1349 Points)
Replied 19 September 2017

In my openion it's not generation of black money

we can have refernce of section 35 where weighted dedcution of 125% or 200% is allowed for specified expenses in Income Tax Act, but expense amount is 100% only.

RAJA P M ("Do the Right Thing...!!!") (127138 Points)
Replied 19 September 2017

As per rule and (return) it's white... Above said view it's Black Money...

Aakash Valeja (16 Points)
Replied 19 September 2017

if u pay tax on 350000 its white
note:- 8% is the minimum limit...we can declare over 8% too

1 Like

Rakesh Bandal (Self Employed and Agriculture) (1349 Points)
Replied 23 September 2017

You should Prepare your balance sheet and profit and loss account as you prepare regularly

For the purpose of computition of total Taxable Income show profit under section section 44AD as per your estimation

You have the OPTION not OBLIGATION to declare higher income than 8% (Subject to all conditions of 44AD are satisfied and complied with)

There is no question of Black or White Money, (It may arise if your sale is say 10 lakhs and for the purpose of estimation you have showed only 8 Lkahs , and on estimated net profit on 8 lakhs instead of 10 lakhs)

Any other suggessions are welcome