Comment on Taxation Simplified

Rajat commented on 06 Mar 2014, 11:58 AM

Benefits of 44AD
Sir have taken this material from CA blog..
If my income from fno is above 8% say for e.g, 15% higher % of turnover and I only show 8%
This CA blog purely shows in point have 7.ITO has not any power to assess anything excess of it.Will it still be scrutinised?IF i will take opt 44ad and file 8% of turnover then I cant claim expenses ..If I claim higher profits than Im loosing substantial benefits of 44ad..
Please clear this scenario
1. Assessee has not required to maintain books of accounts of the eligible business .
2. The income from the eligible Business is estimated @8% of the gross receipt or total turn over.
3. Assessee can voluntarily declare higher income than 8% of the total turn over or gross receipt.
4. All deduction under section 30 to 38 including depreciation and unabsorbed depreciation are deemed to have been allowed
5. Moreover, it will be assumed that dis-allowance, if any, under section 40, 40A, 43B have been considered while calculating the deemed income.
6. Assessee shall also be exempted from the payment of Advance Tax.
7. If returned income of the assessee is 8% or more of the total receipt/ turn over, the assessing officer dose not have any power to assess any thing excess of it.
8.Assessee opting for the above scheme shall also be exempted from the maintaining books of account and assessee is not under any obligation to explain individual Entry of cash deposit in the bank unless such entry has no nexus with Gross receipt. (CIT V SURINDER PAL (P&h))

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