Comment on Taxation for Traders - Introduction

Nithin Kamath commented on 28 Mar 2015, 10:43 AM

Check this income tax calculator

1. Yes
2. Firstly you can’t combine salary income with Trading income. The business of trading has to be kept separate. So if your business profit is less than 8% of the turnover, you need an audit. You can club only other business income and can’t club (Salary, interest, or rental income).
3. No, your income is 25k and turnover is 500k, so 5% and yes audit required.
4. Yes you can use section 80C for deductions, but like I said earlier you can’t combine other income.
5. Like I said, you can’t combine all those other income. So assuming your turnover is 500k and profit is 50k (10%). But assume after the expense, your profit is 20k which is 4% profit. You will need an audit in this case.

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