Question ID : 44515

Audit requirement

For the Presumptive scheme of Income Tax Net profits should be 8 % of cash sale and 6 % for sale through Neft/cheques etc How should this be bifurcated as most of the debtors remains unpaid at the time of finalisation of balance sheet

Answer ID : 85105

Bank receipts out of the current year receipts would only qualify for 6% and remaining would be taxable @ 8%. Still difficulties would remain their in arriving actuals

Answer ID : 85112

For non-cash receipts, bank statement should be verified. 6% of such amount credited directly in bank for non-cash sales will be treated as presumptive net profit. Out of remaining amount of sales, 8% will be treated as net profit.

Answer ID : 85116

Amount received out of the total turnover in a financial year other than in cash till the due date of filing income tax return u/s 139(1) can be considered for 6% calculation vide proviso to 44AD(1).

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