Comment on Taxation Simplified

Nithin Kamath commented on 06 Mar 2014, 06:48 AM

Aijaz,

I have corrected my earlier comment, I had thought you had mentioned a trading loss and hence suggested you show 8% of turnover as profit to avoid audits. In your case, since profit is more than 8% of your turnover, you anyways don’t come under audit. It is kind of a loophole in the system, but I’d advise not to take it, add this 10lks of profit to all your other income, reduce the expenses and then pay tax according to the normal slabs. ITO will have no problem if you have paid more taxes, but if you have paid less it can always cause some trouble in the future.

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