Thank you @Quicko for clear clarifications.
This helps
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Where is it written under 44AD “whichever is higher” has to be declared as income?
It however says “sum higher than the aforesaid sum claimed to have been earned by the eligible assessee “. Here the assessee has option to claim that he/she has earned more than 6 or 8% of turn over.
Where does it mandates declaring actual profit at all? Please be specific with reference from existing law and judgements?
Also, on opting 44AD, no further deductions are available under section 30 to 38 of IT Act. Then what is the logic behind declaring actual income under 44AD when you are not getting deductions benefits?
@Quicko please confirm if this is true for section 44AD? For this FY (2023-24)
There is a condition to it. all the transactions should be done via banking channels.
Hey @entice,
Yes, the turnover limits have been updated in Budget 2023 and will be applicable for FY 23-24.
I have one question…If we take section 44AD for share market income and show profit at let suppose 9 percent and actual profit is way more than that…How Income tax will know about it…We are not suppose to maintain any books of accounts…Even if we can get Actual income from broker…How income tax authority can compute actaul expenses as bank stat will have personal and business related expenses both in same statement and we are not rquired to maintain books under 44AD…So there is no way itr authority can compute actual expenses that too after many years later…What is your take in this.
Income tax authorities will get all info from your demat accounts.
But how will they get info of expenses as we are not required to maintain books of accounts