watch_later 07/03/18

Respected Pulkit Sir,

This days I m coming across persons who want to file returns for their wives and pay tax for 2 years just for generating white capital.

My doubt is paying Tax to gov irrespective of genuine income can be trouble too. I preferred showing there income under Sec 44AD now my doubt is actually there is not a single rupee deposit in cash in fact bank accounts are opened now only after my suggestions. So sir in 44AD if there comes a scrutiny what is the thing officer can ask for because at one point sections says not to maintain books where on other hand if I am showing sales as bogus. So now what can be done as per your suggestions.

No purchase no sales done nor a single deposit being deposited in bank but just for two years filling they want to show income and are ready to pay bulk tax ?

Will it be OK or a trouble?

1 Response | Latest response: 07/03/18 | Sort by Likes(thumb_up) Recent | Income-Tax Reply
watch_later 07/03/18

If the assessee is opting for section 44AD, then he is not required to maintain books of accounts. As per Supreme Court decision, Department can not scrutinize books of accounts of the assessee, as it assumed by the law that he has not maintained books of accounts. If the Assessing officer is of the view that sales are under reflected, then he himself has to prove this. However sales should not cross the statutory limit, set for the registration under indirect tax, if it does then you may get notice from Indirect tax authorities. Income Tax Department shares its information with Indirect Tax Authorities and vice versa.

For Example : Supplier under GST is required to take registration if Supply Value exceeds Rs 20,00,000/- in a financial year. So Sale value under section 44AD should not exceed Rs 20 Lakh, if it does, then you may get notice under GST Act, and Income Tax Department may also ask you your GSTIN.


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