Comment on Business Line: Read Section 44AD when filing return

Nithin Kamath commented on 01 Aug 2013, 09:03 AM

Firstly rainmaker,

Turnover has nothing to do with your profitability or taxes. Turnover is just to determine if you need an audit or not.

In your case it depends on how much profit you have made in all the trades executed in the AUG series. You need to pay taxes on the profits after reducing all the expenses.

About the presumptive profit, yes you can get away presently by showing profit of 8% of the turnover and then paying taxes on that 8%. But it is not advised, because the IT department might come back on you in retrospective.

Cheers,

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