Comment on Classifying Your Market Activity

Nithin Kamath commented on 06 Aug 2017, 01:06 PM

You are talking about section 44AD. Which was made for small businesses who wanted to avoid an audit if turnover wasn’t much. Rs 1546 is the profits and taxes has to be paid by adding that to your income. Yes this is kind of a loophole for a trader to show 6% of turnover as profit and pay tax around it. But taking any such route to avoid paying taxes can be a pain tomorrow, chances of being asked to pay tax with penalty. This is meant for small businesses to avoid audit, as long as it doesn’t cause a loss to the government.

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