Sir this was the first time i added(we) business in my balance sheet ......
My purchase was ard 5L and sales was 5.10L.....
Now CA took stuff in stock figures ard 1.6l....and overall profit same 1.6 Lakhs..and after all deduction like salary to workers and all license stationary expense 61k was shown as profit....
Now i wanted to ask what is this presumptive type of taxing on business?
Can i avail of same or what are the condition to be allowed to use the same
Now if i can apply the same.....Is my following analysis correct?
I guess for my assessment year 2010-2011.....my turnover would be ard 12l-14l....Now if i go with the same(presumptive) format of taxation...considering higher amount 14L..at 8% rule...ard 1 lakh 12000 becomes my income.....right...
But i also freelance a bit....and my earning through it is ard 2 lakhs..........
So my overall income on which tax will be caluclated is 3 lakhs 20000(if no investment for 80C done) on that ard 20k becomes my tax...right???
Also is it necessary for me to maintain ledgers as what i heard for below 40L its not compulsory...but since i file vat too it somewhat becomes compulsory to me