Fire your tax related queries and i would get it solved!!!

[Satya.]

Nikhil Sir,lot of confusion on 44ad,so this query.Sir,if i declare 8% dis yr den I hv 2 do same thing for next 5yrs,u said.
dis yr my TO was hardly 1L,so no prb declaring 8%,bt if next yr my TO became say 1Cr,do i need 2 anyhow declare 8% of 1Cr which is 8L profit,though d profit is nt 8L at all?

 

[canikhil]

Nikhil Sir,lot of confusion on 44ad,so this query.Sir,if i declare 8% dis yr den I hv 2 do same thing for next 5yrs,u said.
dis yr my TO was hardly 1L,so no prb declaring 8%,bt if next yr my TO became say 1Cr,do i need 2 anyhow declare 8% of 1Cr which is 8L profit,though d profit is nt 8L at all?

Unfortunately, yes ...this is how the regulation is

 

[Satya.]

Unfortunately, yes ...this is how the regulation is

Ok,wht rule says if we r nt regular trading f&o?
Say dis yr we showed 8% bt next yr we didnt trd stock market at all,bt next yr of it again we resumed f&o den will dis 8% remain intact?

 

[canikhil]

Ok,wht rule says if we r nt regular trading f&o?
Say dis yr we showed 8% bt next yr we didnt trd stock market at all,bt next yr of it again we resumed f&o den will dis 8% remain intact?

It seems I like read your query a bit differently. The regulation applies to actual turnover. Doesn't mean that you need to declare turnover of 1 cr. Lets say this year you declare 8% profit. Next year you dont do any trade, no business is done and hence no need to worry about presumptive taxation. Now lets say next year, you do 50 lakhs turnover, then you need to pay tax on presumptive profit of 8% (6% in case of the turnover routed through bank account).

 

[Satya.]

It seems I like read your query a bit differently. The regulation applies to actual turnover. Doesn't mean that you need to declare turnover of 1 cr. Lets say this year you declare 8% profit. Next year you dont do any trade, no business is done and hence no need to worry about presumptive taxation. Now lets say next year, you do 50 lakhs turnover, then you need to pay tax on presumptive profit of 8% (6% in case of the turnover routed through bank account).

Nikhil Sir,Let me ask you one more time correctly to avoid further confusion(connected keyboard to type )

Year 1-my TO is 1L,so I declare 8% which is hardly 8k as a profit.
Year 2- say my TO is likely 1Cr,so declaring 8%(8L profit) is too much when in actual my profit is very less(or some loss).So in this situation,we can do audit instead of declaring 8%.
Year 3-I dont do any trading
Year 4-I do some f&o again....here what is applicable? 8%(6% now) rule or audit again as I did audit in Year 2.I have to adjust my loss.

 

[OneThatGotAway]

Guys get Good CA .. it;s india .india does have good talent ..
Why u guys want to self uplaod Efile it then get into hazzel of scrutiny.
NOt worth it.

Instead that time can be used to make money.
Get good CA and get your job done.
Never go alone to ITR office . Appoint CA ..you won;t even go to itr office
even if u have scrunity all be taken care by CA.

 

[canikhil]

Nikhil Sir,Let me ask you one more time correctly to avoid further confusion(connected keyboard to type )

Year 1-my TO is 1L,so I declare 8% which is hardly 8k as a profit.
Year 2- say my TO is likely 1Cr,so declaring 8%(8L profit) is too much when in actual my profit is very less(or some loss).So in this situation,we can do audit instead of declaring 8%.
Year 3-I dont do any trading
Year 4-I do some f&o again....here what is applicable? 8%(6% now) rule or audit again as I did audit in Year 2.I have to adjust my loss.

Year 1-my TO is 1L,so I declare 8% which is hardly 8k as a profit.
Year 2- say my TO is likely 1Cr,so declaring 8%(8L profit) is too much when in actual my profit is very less(or some loss).So in this situation,we can do audit instead of declaring 8%.

Year 3-I dont do any trading
Year 4-I do some f&o again....here what is applicable? 8%(6% now) rule or audit again as I did audit in Year 2.I have to adjust my loss.
In the year four audit is applicable as you cannot use 44AD till year 7. Only in year 8 you can use 44AD again.

 

[Bhairava]

Hello Nikhil Ji,In Interest Certificate there are 2 entries- Interest Paid and Interest Accrual.
Which entry do we consider?

 

[canikhil]

Hello Nikhil Ji,In Interest Certificate there are 2 entries- Interest Paid and Interest Accrual.
Which entry do we consider?

consider the total of both the entries. this is the total interest earned during the year.

 

[traderniftybull]

Year 1-my TO is 1L,so I declare 8% which is hardly 8k as a profit.
Year 2- say my TO is likely 1Cr,so declaring 8%(8L profit) is too much when in actual my profit is very less(or some loss).So in this situation,we can do audit instead of declaring 8%.

Year 3-I dont do any trading
Year 4-I do some f&o again....here what is applicable? 8%(6% now) rule or audit again as I did audit in Year 2.I have to adjust my loss.
In the year four audit is applicable as you cannot use 44AD till year 7. Only in year 8 you can use 44AD again.

so the conclusion is (for TO less than 2 Cr and actual profit less than 8% (or 6%))

- if one opts for declaring 8% (or 6%) profit on his TO in current year, then he has to do so for next 5 more years
and
- if one opts for audit in current year, then he has to do so for next 5 more years

Am I right.