Section 44AD where net income is more than 8% of turnover...

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  1. Curious16

    Curious16 New Member

    Where net income is more than 8% of turnover, is it required to declare a higher income and therefore pay a higher tax?

    For example, if there is a gross business turnover of 1.50 crore (including VAT charged and deposited), and profit is say around 20% of gross turnover or 30 lakhs, will presumptive tax still be calculated at 8% = 12 lakhs ,as net income?

    Will this be true also if profit ratio is higher? Will assessee have to declare higher income, and if so, is net income to be calculated by maintaining books of account, which defeats the purpose 44AD?
     
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