Refund of Excess Amount of Advance Tax / Sec. 44AD (presumptive tax)

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Refund of Excess Amount of Advance Tax / Sec. 44AD (presumptive tax)

Hello , My advance tax payment was Rs. 12 lacs in the financial year 2017-18. However, as my turnover is less than 2 crores and my tax liability would be less if I opt for the Presumptive tax section (sec 44AD) . I have been advised to take benefit of this section. . My tax liability under presumptive scheme is 4 Lacs and consequently my claim for refund would be Rs. 8 lacs . I wish to ask the following a) How much time does the IT Dept. take normally to process refunds of larger amounts? b) In the present circumstance where the income is more than 8%, lets say 20%, , is it permissible to declare the presumptive percentage of 8% and meet my tax obligation by paying tax on such 8% , or is obligatory to disclose the actual percentage. c) If I declare the net profit to be 8% , will the IT Dept automatically accept what I am declaring while processing the refund d) can I be asked to prove that my income is not greater than 8%

Profile photo of Rahul Rampuria Asked By: Anonymous 1 replies 0 helpful answers Last Updated: 10 months, 3 weeks ago
  • Profile photo of Rahul RampuriaAnonymous

    Hello , My advance tax payment was Rs. 12 lacs in the financial year 2017-18. However, as my turnover is less than 2 crores and my tax liability would be less if I opt for the Presumptive tax section (sec 44AD) . I have been advised to take benefit of this section. . My tax liability under presumptive scheme is 4 Lacs and consequently my claim for refund would be Rs. 8 lacs . I wish to ask the following a) How much time does the IT Dept. take normally to process refunds of larger amounts? b) In the present circumstance where the income is more than 8%, lets say 20%, , is it permissible to declare the presumptive percentage of 8% and meet my tax obligation by paying tax on such 8% , or is obligatory to disclose the actual percentage. c) If I declare the net profit to be 8% , will the IT Dept automatically accept what I am declaring while processing the refund d) can I be asked to prove that my income is not greater than 8%

  • Profile photo of Chetan ChandakChetan Chandak
    Moderator

    Section 44AD is a presumptive taxation scheme as per which you have to declare minimum specified %of your total turnover/receipts as taxable income and you are relived from the burden of maintenance of proper books of accounts and other records. If you declare this % (8/6) as your income no further questions can be asked to you. But if you wish you can voluntarily disclose higher % as your taxable income.

     

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