Comment on Taxation for Traders - Introduction
commented on
30 Jul 2014, 02:41 PM
Sharad, your friend is right, as long as you a retail trader is declaring it in whichever way you want to, but ensure that your actions doesn’t drastically change your income tax liability, I think you will be alright. Best way to avoid this confusion is to file an ITR 4 and get yourself audited in any case.
If you are planning to declare 8% of your turnover as income(ITR 4S) and declare say Rs 10lks as your turnover. If tomorrow the ITO decides your turnover is 1 crore, that is when the problem arises. If you use an ITR 4 and get a CA audit your returns, turnover doesn’t really matter.