Alpha & Co is a proprietary concern owned by Vimala. The total turnover for the year 2016-17 is ₹ 52 lakhs which includes proceeds realized through banking channel before 31st July, 2017 was ₹ 12 lakhs. The presumpti
CS Executive · Tax Laws and Practice · PYQS · December 2017
Alpha & Co is a proprietary concern owned by Vimala. The total turnover for the year 2016-17 is ₹ 52 lakhs which includes proceeds realized through banking channel before 31st July, 2017 was ₹ 12 lakhs. The presumptive income under Section 44AD would be:
Answer & Explanation:
Correct Answer: Option (A)
Official answer key: (A), (C). Official source note: As per law as amended by the Finance Act, 2016, 8% of 52 lakh = 4,16,000. However, As per law as amended by the Finance Act, 2017 = 8% of 40 lakh + 6% of 12 lakh (banking channel) = 3,92,000. Further the amendment made by Finance Act, 2017 applied retrospectively for FY 2016-17 also. Hence, candidates marking option A/C are valid.
Topics: Income Tax
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