Section 44ad - Will only 6% or 8% be added to my capital?

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..... I want to switch to ITR-4S under section 44AD . I am running an eligible business, no doubt on that. In the past years, my profit ratio has been well above 6% of the gross receipts, even upto 40% in some years, but it's very inconsistent. All my receipts are digital so I am eligible for presumptive income @ 6%. Assuming my gross digital receipt is 1 crore and I show presumptive income of .....

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..... 6 lakhs, and I had made a mutual fund investment of 20 lakhs. Can the IT department consider 14 lakhs (20-6) as my undisclosed income and impose penalty etc.? I don't even know the actual profit since I don't maintain books, as relaxed by this provision. Now, my question is whether only ₹ 6 lakhs will be considered as my addition to the capital and any excess amount (out of the r .....

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..... ecorded digital turnover) found in my bank/investment will be considered as undisclosed income (liable for penalty etc.). If so, what is the main benefit of section 44AD ? Is it just freedom from bookkeeping for the eligible assesses, or should it be considered as a discounted slab in income tax, and any amount within the digital turnover could be considered as capital? - Reply By DR.MARIAPP .....

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..... AN GOVINDARAJAN - The Reply = Section 44AD is not a discounted slab. It is applicable to eligible assessee doing an eligible business having turnover less than ₹ 2 crores. - Section 44ad - Will only 6% or 8% be added to my capital? - Query Started By: - Nitin Goyal Dated:- 25-2-2018 Income Tax - Got 1 Reply - Income Tax - Discussion Forum - Knowledge Sharing, reply post by an expert, .....

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..... personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax .....

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