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Hi Pankaj, my father is a stockist/distributor of few agencies (FMCG products) in a small town. The annual turnover is less than 10 lac. It is not audited thus. The distributor commission is around 5% (varies for each agency) and after deducting expenses, the net profit comes around 3.5 to 4%. Now, when we asked our CA to file return, he is saying that we will have to show 10% profit. He is considering us like kirana stores. This looks unfair as we are just earning 4% profit and he is asking to pay taxes by showing 10% profit. Can you please guide us what to do? asked Jan 12 '13 at 14:15 by aa1003inv 1●1 |
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I am not sure why CA is asking to show 10% profits. You should file ITR-4 (income from business) and show all income and expenses incurred in running business (phone, electricity, marketing, employees etc.). After deducting all expenses, compute income tax on net income with slab rates and pay only that tax. answered Jan 17 '13 at 00:27 by Pankaj Batra 5.2k●3●20 |