Presumptive Tax

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..... Presumptive Tax
Query (Issue) Started By: - Ethirajan Parthasarathy Dated:- 16-12-2019 Last Reply Date:- 17-12-2019 Income Tax
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Income Tax
An assessee owns 8 Lorries. He files tax return offering net income of 7,20,000 (90000*8) under section 44AE of IT Act. He does not maintain books of account. The assessee is aware that there is accrual to his bank account by about 15 .....

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..... lakhs after withdrawal for lorry mentainance and personal maintenance. My queries are. Is the assessee justified in offering only 7,20,000 as taxable Income knowing well that his surplus is really more Will the department accept the assessee stand that (the source of) his investment of 15 lakhs in FD is out of taxed amount for purpose of section 69 of IT Act 1961. Reply By Rajendra Prasad: The .....

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..... Reply: Dear Mr Ethirajan, The query is to be divided into two parts. 1. Presumptive Income : Correct. 2. Investment in FD : You have to prepare a cash flow and constructed balance sheet. If you could show the cash flow then there will be no problem. Please note that Depreciation is also can be added to the income and loan payments are to be deducted in the cash flow. If you prepare cash Flow .....

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..... and Constructed Balance Sheet , you can easily explain the sources. Do not compare income with cash flows. If you do not have cash flows better to offer more income than the minimum income required to be offered U/s 44AE. //Joy is never tomorrow :: It is now // Sri Sri Ravisankar
Discussion Forum - Knowledge Sharing .....

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