You have declared your turnover of 1 crore. You have paid your tax at 6% under presumptive taxation. You have not underreported your turnover. SO you have complied with the provisions of section 44AD. Now if the AO asks about our investments, we can say that we had a turnover of 1 crore, as is declared and we made our investments from the said amount.
Now what exactly do you think the AO will challenge?
I think you are not familiar with presumptive taxation and you are confusing yourself. No law has been broken, no turnover has been under-reported.
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I have also confirmed this with my CA associates
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Okay boss. You are right.
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He is being funny. Enjoy the weekend.
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Yeahh. It’s fine. Everybody has right to their opinion. You too enjoy your weekend.
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I was reading more on this and found this interesting. If you guys feel it’s relevant then read. Otherwise ignore.
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I really found this thread and each of yours argument relevant.Keep sharing your views and other on this topic, this year FNO turnover for option sellers have decreased considerably so presumptive taxation is good option. But , yeah its case by case and one need to know all the edge cases and ramification of this scheme.
Keep sharing your thoughts,arguments and articles.
Good read.
can you tell me what happen after search and survey if they found tax evasion?
like you said if someone declare 6 lakhs income and invest 90 lakhs in stocks. suppose 84 lakh is black money. what happen then?
what are the procedure and penalties? I have read this on internet but some write 30 % tax and 200 % penalty.
how someone can pay 200 % penalty?
That’s the penalty for concealing your income. So always declare your income rightly.
Why are you worried? You have nothing to worry, if you are on the right side.
I was reading an article on clear tax
in first case it is 30% or 60% penalty and in other case it is 50% and 200 % penalty.
I was curious why there are two different penalty rates.