Comment on Notice under Section 139(9)? - Possible reason

AKSHAY GOVEKAR commented on 06 Sep 2014, 11:22 PM


• It is only for individual, HUF and firm (not LLP) Carrying on business except business u/s 44AE.

• ASSESSEE ‘s gross receipt should not exceed 1 crore.

• Assessee can declare 8% or higher sum of his gross receipt as his income under this section and he has no need to maintain accounts or get the accounts audited.

• So it assessee is declaring lower income than 8% and his total income exceeded basic exemption limit , he should get his accounts audited by CA u/s 44AB.

• Advance tax provision is not applicable to the assessee following sec 44AD.

• ASSESSEE cannot get deduction u/s 10AA AND business related deduction of chapter 6A. He can get deduction u/s 80c to 80G.

• All deduction u/s 30 to 38 and depreciation shall be deemed to have been allowed.

• Written down value of assets shall be calculated as if the depreciation has been actually allowed.

• SALARY AND INTEREST of the partners are to be allowed after calculating profit under this section.

• If any material supplied by buyer, it will not be form part of gross receipt.

• Assessee cannot carry forward unabsorbed depreciation or business loss.

• This section is not applicable to business man earning commission income or agency income.

I have tried to cover main points. I hope it will be helpful for beginners.

Thanks for reading

CA Tarannum Khatri

Source : research on the sections
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