Search Results For: presumptive taxation


QUERY: In the course of search under section 132 or survey under section 133A of the Act, entries of cash loans, expenditure and investments are generally found. Can the correctness of the entries be disregarded in computing the total income of the assessee under section 153A who is required to rebut the presumption as to truth of the assets, entries in seized documents raised in section 292C of the Act?
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Section 292C deems that when any material is found in premises of a person searched or surveyed, it may be presumed that material belongs to the person, that the contents of such material is true and handwriting in that document is of that person.

QUERY: For the purpose of section 44AD, is the limit to be decided qua assessee or qua business?
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Qua both. The scheme is applicable to “an eligible assessee engaged in eligible business” The salient features of the new presumptive taxation scheme are as under:

a) The scheme is applicable to individuals, HUFs and partnership firms excluding limited liability partnership firms. It is also not be applicable to an assessee who is availing deduction under sections 10A,

QUERY: ‘A’ runs TV repair shop. His gross receipt are Rs. 1,80,000/- and net income is Rs. 1,35,000/- more than 8% of the gross receipts. So section 44AD of the Act is applicable to him. Can he file ITR 4-S, for the assessment year 2011-12?
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Yes, he can file ITR 4-S, as section 44AD is applicable to him. Tax audit requirement would not apply in respect of business covered

QUERY: ‘X’ is engaged in business of sale of liquor. His turnover is 40 lakhs during the financial year 2010-11. The turnover is inclusive of sales tax. Now for the purpose of section 44AD of the Income-tax Act, 1961 whether total turnover or gross receipt will include sales tax? Will it make any difference, if sales tax is credited separately.
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Section 44AD, would be applicable for the assessment year 2011-12 if total turnover or gross receipt of ‘X’ does not exceed Rs. 60/- lakhs. For sake of consistency, ‘X’ should follow the same accounting policy from year to year.