If I adopt the PTS for a small business initially, but then opt out of PTS in one of the subsequent five years, what will be the consequences?
Once you opt for PTS then you have to continue with it for the next five years if your turnover is less than 2 crore rupees. Even after having a turnover of less than 2 crores in any of the subsequent five years if you declare profits lesser than 8% (or 6%), then it is considered as withdrawal from PTS and you are barred from availing PTS for next five years from the assessment year in which you had withdrawn from PTS.
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Can I opt for presumptive taxation scheme (PTS) for small business and declare the profit at lesser percentage of turnover/receipts than that mandated as per the PTS (i.e. I declare profits at a rate lesser than 8%)?
You cannot opt for PTS if you are declaring profits at a rate lesserthan the mandated rate. In this case, you need to maintain the books of account and get them audited from a Chartered Accountant and based on the audit report you have to declare ...
Being a professional, I adopt the PTS. How should I compute my taxable business income?
If you adopt PTS as a professional, then your taxable income shall be 50% of your turnover or receipts. For example, if your receipts or your annual turnover is Rs.48 lacs, then you must declare taxable profits at 50% of the turnover i.e Rs.24 lacs.
Can I take a loan against these bonds or convert them to liquid within the five years period?
In case these bonds are converted to money or held as security against a loan within five years of investing, then the amount of capital gain which was earlier exempt from tax shall be deemed to be long term capital gain of the previous year and will ...
What will happen if I opt for presumptive taxation scheme (PTS) for profession but I declare the profit at lesser percentage of turnover/receipts than that mandated as per the PTS (i.e. I declare profits at a rate lesser than 50%)?
You cannot opt for PTS if you are declaring profits at a rate lesser than the mandated rate. In such case, you need to maintain the books of account and get them audited from a Chartered Accountant and based on the report of such audit, you have to ...
What are the consequences of not responding to Notice 142(1)?
There are severe consequences of not complying with the demands of Notice 142(1). You may be charged a penalty of ₹10,000 u/s271(1)(b) The Assessing officer, on the basis of all the relevant information and proofs gathered by him, will give a “Best ...