Income from Business and Profession

On business taxation for small businessmen, we looked at whether we need books, the nature of accounting,  the presumptive times, the audit times, just to introduce ourselves to business world.

I am a big businessman, viz, my turnover exceeds Rs. 1 crore in a year. I am a big specified professional, viz, my gross receipts exceed Rs. 50 lacs in a year. I am declaring profits below 8%/6%(conditional) in business or below 50% in specified profession. Below these limits includes me declaring losses. In all

I have an option to presume and declare that my income is 8% (or I have an option to presume more) of my sales. This percentage further reduces to 6% for my portion of sales which are received in bank by cheque or electronic mode. So if I presume and declare an income of 8%

If I am a specified professional, I can go the presumptive way, provided I declare my income to be at least 50% of my gross receipts or revenues. This way I need not maintain books, all my expenses and depreciation are presumed considered, and completes my tax records compliances. This option is only to enable

If I am doing normal business (not being in ‘presumptive boat’), and I find that my profits being businessman are below 8%/6% , or being a specified professional are below 50% of my turnover or receipts, then I must get my accounts audited by a Chartered Accountant, as it is always presumed that I will

The presumptive option and the Businessmen The presumptive option and the Professionals The minimum % times and moving out of ‘presumptive’ times

If you are in the ‘not required to maintain books’ category, still you need to have a basic track of your gross receipts, income or profit, on the profit and loss side, and few assets and liabilities which you need to disclose at year end, such as cash balance,  inventory, how much you owe  others

If I follow cash method which I can ,  I record my incomes and expenses as I receive or pay. If I follow accrual method which also I can, I record my incomes and expenses as I earn or incur. But I need to decide for once which of cash or accrual I will use

Hi, I am doing business or profession, I need to keep proper books (proper means the ability to identify and track), record of my incomes/ bills raised by me and my expenses. At end of year I prepare accounts, which means my profit and loss statement  (showing under various categories My incomes and My expenses)and

If I am doing business or in a profession other than specified (see further) Monetary limit : My income is less than 1.2 lac a year, as well as,                              my sales or turnover or receipts are less than Rs. 10 lacs a year When: Both expected in current year  And  being true in each