General Trading Chat

[aja]

I am not too sure but in presumptive taxation of 8 % no deductions are allowed so there cannot be nil tax return.

Turnover is 20L
8%=1.60L

CA showing 1.62L as 8% profit+rest FD interest=2.5L
NIL Tax

Filling under 44AD using ITR4

Hope this way of fiing return by CA is right,else I will be in a big trouble.

 

[traderniftybull]

haha,you edited it bullbhai.But I read it

Why such questions arise?
-Because I'm a small trader
-I'm loosing
-I know if something goes wrong,there's a way to appeal against ITO.But do you really think that we have that much time,energy and money for such things?

Bhai agar aisa hota to chupchap 20k deke audit kar lete naa.
Audit or no-audit ka question idhar-udhar chhapte nahi baith jaate.

Small trader wrongly caught caught in this rule and don want to pay 20k to CA.Its a burden,so this query from all the angles.

Ha ha
Very quick

Bhai post your query (actual and with all facts), in taxation thread. Only there you will get correct reply.
Going into appeal etc is waste of money, energy and time (you rightly said it) unless amount involved is big to fight.

BTW, let us know if (god forbid) are you already involved in such a situation? Then contact a local CA.

 

[Smart_trade]

Turnover is 20L
8%=1.60L

CA showing 1.62L as 8% profit+rest FD interest=2.5L
NIL Tax

Filling under 44AD using ITR4

Hope this way of fiing return by CA is right,else I will be in a big trouble.

Under presumptive taxation you have to pay tax on 1.6 L ....but check up with a CA as I have read this long back. I may not be updated on latest rules. Ask this to Nikhil sir....I feel that your CA is wrong in filing nil tax teturn.

Smart_trade

 

[traderniftybull]

Turnover is 20L
8%=1.60L

CA showing 1.62L as 8% profit+rest FD interest=2.5L
NIL Tax

Filling under 44AD using ITR4

Hope this way of fiing return by CA is right,else I will be in a big trouble.

This seems correct, and so point of worry. (If TO is correct)

Perhaps your point is 8% is 1,6 but your CA showed 1.62
Even then its not a point to worry, as you can show above 8% of profit, but one should show 8%, why more.

 

[XRAY27]

I am not too sure but in presumptive taxation of 8 % no deductions are allowed so there cannot be nil tax return.

AO is not above the law. The IT Act says you need not keep books of accounts if you go for presumptive taxation so the act does not require us to keep books of accounts in presumptive taxation. But once you decide presumptive taxation, you cannot change it for 5 years minimum.

For your FD interest you will be allowed deductions but not for 8% presumptive profit on which tax has to be paid. You cannot file nil return after applying deductions even to presumptive profit .Otherwise what is the meaning of presumptive taxation ? But check up with a CA as I have never filed my return under presumptive taxation.

Smart_trade

Da!!! Presumptive taxation does mean he has to pay it is not MAT or CANVAT !!! yes there can be cases without tax and just ITR 4 filing is enough ,but this same why of treatment he should continue for next 5 years !!!

 

[timepass]

American markets timings have changed or what ?? Daylight savings or something ? Since when ?

 

[traderniftybull]

American markets timings have changed or what ?? Daylight savings or something ? Since when ?

yes, time has changed since 7-10 days (perhaps)
Now from 7 pm IST

 

[XRAY27]

Turnover is 20L
8%=1.60L

CA showing 1.62L as 8% profit+rest FD interest=2.5L
NIL Tax

Filling under 44AD using ITR4

Hope this way of fiing return by CA is right,else I will be in a big trouble.

Filing is ok there is no need for 44AD audit at all, in Presumptive income case there is no need for audit..tax is due in your case i'm not posting the tax due and penalty thats effects you as this is open forum..

 

[Smart_trade]

Da!!! Presumptive taxation does mean he has to pay it is not MAT or CANVAT !!! yes there can be cases without tax and just ITR 4 filing is enough ,but this same why of treatment he should continue for next 5 years !!!

5 years continuation is specified in Act.One cannot file under presumptive taxation in one year and under normal taxation in other years.

Regarding other points, I feel it defeats the principle of presumptive taxation.But I may be wrong here .

ST

 

[XRAY27]

5 years continuation is specified in Act.One cannot file under presumptive taxation in one year and under normal taxation in other years.

Regarding other points, I feel it defeats the principle of presumptive taxation.But I may be wrong here .

ST

This is what i'm saying !!! Once he filed a ITR under presumptive taxation he has to continue that for next 5 years ,if person makes profit in next couple of years then it really hurts his pocket,but this choice is left to assessee but ones he used it then next 5 years he is bound to carry it