Comment on Taxation Simplified

Ajay,

Like I just mentioned to Aijaz, the idea of declaring 8% as profit on the turnover is in case the turnover is less and there is a loss, and this is just to avoid audit. As you know, no one has a problem if you pay more taxes, but in a case like yours, where for a 55lk turnover you have a profit of 8lks, you anyway don’t need an audit. What you should ideally do is, add this 8lks to all your other income, reduce all expenses and then pay taxes according to the slabs.

Cheers,

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