10-11-2011, 04:43 PM
Please me have your advice(s) , how you prepare Wealth reconciliation statement.
Suppose, I am proprietor of small company and received amount of Rs. 500,000/- on a/c of supply on which tax @3.5% amounting to Rs. 17500/- is deducted , total expenses during the year is Rs. 65000/- , my net income after tax is Rs. 417500/-.
Now my question is what amount of income should i declare in reconciliation Rs. 417,500/- or reverse calculate Rs. 17500/- (income tax on supply) with rate of tax on individual which is 7.5% as per first schedule "Where the taxable income exceeds Rs.300,000
and does not exceed Rs.500,000 7.50%"
if i calculate reverse then my income will be Rs. 233,333/- (17500 / 7.5%) but i i declare Rs. 417,500/- then is there any problem? because income tax on Rs. 417,500/- @7.5% is rs. 31313/- and i paid Rs. 17500/-, is i/tax dept any authority to ask me to pay balance amount???
please help me
Suppose, I am proprietor of small company and received amount of Rs. 500,000/- on a/c of supply on which tax @3.5% amounting to Rs. 17500/- is deducted , total expenses during the year is Rs. 65000/- , my net income after tax is Rs. 417500/-.
Now my question is what amount of income should i declare in reconciliation Rs. 417,500/- or reverse calculate Rs. 17500/- (income tax on supply) with rate of tax on individual which is 7.5% as per first schedule "Where the taxable income exceeds Rs.300,000
and does not exceed Rs.500,000 7.50%"
if i calculate reverse then my income will be Rs. 233,333/- (17500 / 7.5%) but i i declare Rs. 417,500/- then is there any problem? because income tax on Rs. 417,500/- @7.5% is rs. 31313/- and i paid Rs. 17500/-, is i/tax dept any authority to ask me to pay balance amount???
please help me