@Quicko @nithin @ShubhS9 suppose that my fno trading turnover is 97 lakhs. Profits are 60 lakh and this is my sole source of income. Is it legal if I go for section 44AD presumptive taxation and declare only 6% profit?
6% of 97L is only 5.82L and while 44AD does not allow claiming any deductions, is’nt the tax dept losing out on a lot of tax it would have otherwise received? Is there any concept of income tax slabs u/s 44AD? Does this section say that if the profit is higher than 6% it must be declared mandatorily?
1 Like
If you have made that kind of money you need to pay tax as per your tax slab. You can’t invoke 44 AD and pay only 6% tax.
People have wrong conception of presumptive income. section 44AD says that you can show 6% of turnover as profits. It doesn’t say you “MUST” have to show 6%. It says you show 6% or actual profits. That’s it. you show 60 lakh as profit in section 44AD.
3 Likes