The next sheet is the most useful BP, i.e. book profits.
If there is any sheet in ITRU, then this is BP book profits.
Here you will declare your income, how much income you are
earning.
From here, your tax and late fees liability will be
calculated.
My dear friends, this is the most important sheet.
The most important sheet is present on your computer screen.
Let's read it one by one.
We are not going to make a big deal out of it.
We will keep things very simple.
And it is very simple.
We will read all the information one by one.
With peace of mind.
With a relaxed mind.
Absolutely with peace of mind.
My dear friends, understand the things conceptually.
Okay, sir. Okay.
Let's discuss.
First of all, detail of income from business or profession.
Computation of presumptive business income under section 44
AD.
Friends, in presumptive taxation scheme, the government says
If you are a small businessman and you do not want to
maintain accounting
And your income is less than a specified limit.
Your turnover is less than a specified limit.
Then you do not do your accounting.
Do not calculate proper profits.
Do not hire CA.
Do not keep an accountant.
Do not give him money.
You just make your sale bill at the end of the year.
Just tell me the total of the sale.
And give us a definite percentage tax on it.
We will assume that the compliances of your income tax have
been completed.
We will assume that the compliances of your income tax have
been completed.
I repeat again.
The government says.
Do not maintain tele-software.
Do not do accounting.
Do not hire CA.
Do not do any trouble.
Just print a bill book.
And whatever you are selling, cut its bill and keep the
record with you.
At the end of the year.
Whatever your sale will be, put its total.
Give us a definite percentage tax on it.
Because this much percentage is our savings.
Like.
Give us 10%, 12%, 15%
That this much percentage is our savings in the sale.
And then give tax on that savings.
Because the government does not take tax on the sale.
It takes tax on the savings.
And if you keep proper accounting.
Then your expense will be more.
That's why there is a scheme of presumptive taxation.
Presumptive taxation.
You gave your income to the government on the basis of an
assumption.
That this much percentage is our margin in this sale.
And then you paid tax on it.
That is called presumptive taxation scheme.
And we fill ITR 4 for people with presumptive taxation
scheme.
Which section is it? 44 AD, 44 AD.
Name of the business.
Write the name of the business and go.
Come, I write the name of the business.
Whatever your business name will be, write it here.
My dear friends.
Okay sir.
After that.
After that, you have to select a business code here.
Like there will be a lot of options here.
Manufacturer's.
Trader's.
Retailer's.
Which is there in that too.
A long list will come.
You will have to select from it yourself.
What is your job?
So if you are a retailer etc.
Then choose that option.
If you are a service provider.
Then choose that option.
You will choose the option according to you.
If you get that new thing.
Then you also have the option of others.
You can also select the option of others and go.
Okay.
Okay sir.
So I take it according to them.
What should come here for now?
Like their job is fashion garment.
So we are trying to find trading here.
Retailing.
This has come.
Retail.
Sale of textile.
Apparel.
Footwear.
Leather goods.
All this has come here.
Okay sir.
You can write in your words in the description.
If you want to write something.
In your words.
Write like this.
Showroom.
Cloth showroom.
This is not mandatory in your words.
If you want, you can write in the description.
If you want, do not write in the description.
It is not mandatory to write in the description.
Okay sir.
Next option.
There is also a second business.
There is also a third business.
So you can also put their details here.
Gross turnover and gross receipts.
Here you have to tell.
How much is your sale?
And there are two options in this too.
The first option is through account pay check.
And account pay bank draft.
And bank electronic clearing system.
And prescribed electronic modes.
Received before specified date.
Meaning to say.
How much is that sale?
Whose money you have received from the bank.
Whose payment you have not taken in cash.
Received in cheque or online.
Received through UPI.
Received through NEFT.
Received through RTGS.
How much is that sale?
And there is another option below.
Any other mode.
How much is that sale?
In return for which you have taken money from the customer
in cash.
These are two options.
Cash sales will have to be shown separately.
And the sales you have done through the bank.
You will have to show separately.
Why? On cash sales, the government says.
You will have to show a little more savings.
You will have to pay more tax.
If you show more savings.
And the government says.
If you follow digital India through the bank.
And do transactions through the bank.
If you take money from the bank.
Then you are doing more transparent work.
If you tell us a small percentage.
That there is so much percentage left in it.
Then also we will agree.
In total, the government is promoting.
That you do transactions through the bank.
Receive money from the bank.
The government is demoting cash transactions here.
Sir, what is that percentage?
Tell me this.
The government says.
That if you have received cash money by doing sales.
Then you will have to show at least 8% savings.
You can't say that.
You have done a sale of 100 rupees.
And you are not even saving 8 rupees.
You will have to show at least 8 out of 100.
If you show more.
It is your wish.
And if the business is according to that.
Then you should also show more.
For example, I have coaching classes.
I fill ITR 4.
I say 8 out of 100.
The government says.
What is your expense?
Where do you spend 92 rupees?
Tell me this.
So you don't have any investment.
You share knowledge.
You stand and start talking.
Children listen to you.
They give you fees.
Where are you spending 92 rupees?
You don't have any raw material.
No finished goods.
No work in progress.
No labor.
No employee.
Nothing.
You can be an employee.
A small expense.
A different thing.
Still.
Are you understanding?
Okay sir.
So the government says.
You will have to give at least 8 out of 100.
In any type of business.
You can give more than that.
It is your wish.
So if it is your relevant case.
Then you should give.
Not less than that.
Okay.
And the government says.
If you have received money in the bank by doing sales.
If you have received money from the customer by doing sales.
You have received it in the bank.
My dear friends.
So the government says.
Then you will say that our savings is 6%.
Still it will work.
The government has reduced 2% more.
6% or more than that.
If there is a sale in the bank.
The money is coming in the bank after the sale.
So 6% or more than that.
6% or more than that.
Your profit is this much.
6% or more than that.
And my dear friends.
If there is a cash sale.
Then you have to tell the government at least 8% or more
than that.
I am not saying tax.
I am saying profit.
I am not saying tax.
I am saying profit.
Okay.
Okay sir.
Tax will be applied on profit.
Okay.
That is a different thing.
So we asked for this person's bank statement.
How do you want to find out this thing?
You have to ask for the bank statement of the client.
We asked for the bank statement of the client.
We saw how much money is coming in it.
How much money is coming.
We added it.
My dear friends.
Its addition was coming.
4,26,500 rupees.
We will put it here.
And then we asked.
How much is the cash sale?
If we add the cash clear with 7
So it was 3,22,560 rupees.
3,22,560 rupees.
What should I do now? 4,26,500 4,26,500 Money that has come
in the bank.
The government says on them.
Give at least 6% savings.
or tell more savings than that.
Now tell the profit in it.
You wrote this sale.
Now how much is the profit in it?
You will have to tell the government.
Have written sale.
How much is the profit to be told?
Not on sale, but on profit
So if it's a fashion garment 50% is still saved
Why are you doing this?
The government is saying 6-8% is fine
But keep an eye on the software
The officer will also scrutinize it
Where is this much spending going on?
So according to you, put genuine
And if you show very less profit
Then you can get stuck in the future
You will need finance from the bank
The bank will say that there is no savings in your business
Your sale is Rs.
100, your savings is Rs.
That's why you should show a margin
So let's take out 50% of Rs.
Rs. 2,13,250
Write it here
Rs. 2,13,250
In which column? In 6% and more
And Rs.
The cash sale
We also save 50% on that
Write it here
Rs. 1,61,280
You have to write the savings of the money coming in the
bank above
And the savings of the money coming in the cash
You have to write below
And now your taxable income is Rs.
This is the profit on which tax will be imposed
Rs. 3,74,530
Tax will be imposed on this
Now we will see how it will be imposed
After this, my dear friends
Computation of presumptive income from professions
Under section 44 AD
This is for professionals
If CA, CS, CMA
CA, CS, CMA
Doctor, Lawyer, Engineer, Architect
I repeat again
CA, CS, CMA
Doctor, Lawyer, Engineer, Architect
These people should come under the presumptive taxation
scheme
These people should say that
We do not want to maintain the account of Telica software
So there is a scheme for these people
The government says
You also make your bill book
Keep billing according to the sale
Whatever sale and service you are giving
And at the end of the year, tell us the total of your sale
But But For them, the government says
You have to show at least 50% savings margin
Not 6-8% 50% for them
Because the government does not know their expenses Their
expenses are not there
Their investment is very less
You pick up a laptop and start working for big companies
all over the world
Investment is very less
Regular expenses are very less
They know that the margin is very high
Nothing is in the pocket, only knowledge and brain and hard
work
That's it. Hard work is a big thing.
Finance is not so much
That's why they have to show 50%
There are other options
For below 44A, this section we will not discuss now
If this is the work of Goods Carriages
If you want to come in the presumptive scheme
We will not discuss this here
We do not need this
Let's come down
Financial particulars of the business
What is the next option?
Financial particulars of the business
What do you have to do in this option?
Friends, these things are mandatory
To put a creditor
How many creditors do you have?
How much inventory stock is left?
How many debtors do you have?
And how much is your bank balance?
How much is your cash in hand?
It is mandatory to put some things
Sir, you are making a mess
Sir, you said
If we do not want to maintain teledata
Yes Do not want to do proper accounting
Do not want to keep accountants
We have just made a sale book
We write the total of that sale here
And there is a definite percentage in it
The government says that this much is left
Take tax on this
How would we know how many creditors, debtors, inventory,
cash in hand
So friends, that's why I put 00 here
The firm says it is mandatory to put
Will submit, will not take
But the government says that even if there is no detail
If they are available, then it will work
Just pay tax according to what we are saying
In the presumptive scheme, it will work
So we have an option here
There is a middle way, there is to fill and there is no
detail
So fill 000 here and move on
The meaning of 0 is not that 0 means you are saying to the
government
We do not know creditor, debtor, inventory, bank balance,
cash in hand
We do not know how much
And if the client tells you how many creditors, debtors
Then you can put it, there is no problem
You can also keep 0, you can also put
If you have genuine figure
The government is not doing proper accounting
If there is a figure of these things, then put
If not, then write 00 and move on
There is no problem
After filling so much detail, now you have to click on the
validate button
And it says
Sheet BP i.e.
book profit is
Ok So this book profit sheet
We have also discussed this with you
Book profit sheet has been discussed
See what to put in it
You have to put the name of the business
You have to put its nature
What do you work in, what do you deal in
And if you want to put the description in your words, you
can put
The next thing that comes after
My dear friends, it is very important
How much did you sell
And how much money
In return for the sale, you have received cash
That has to be written separately in any other mode
And the money you have received online
That you have to write separately
At least 6% or more
If you are not a professional
And at least 8% or more on cash
Then the tax will come out
And when am I telling these things
When you are not a professional
If you are a professional
I.e. if you are a CA, CS, CMA, Engineer, Lawyer, Doctor,
Architect
If you are all these
Then you will come down to the ADA section
Then you will have to show 50% or more
At least 50% or more
Okay, so
We were traders, we were retailers
We are not professionals in this option
Our client is not a professional, he is a retailer
His job is normal fashion garment
So what did we do for him
In the above option, in 44 AD
And all the bank sales were seen from his bank statement
And all the cash sales were asked from him
And he wrote it here
And the government is saying
That give 8% or more on cash
And give 6% or more on the bank
But the government is saying more words than that
The government has set a minimum limit of 6% or 8%
But if your savings are more than that
Then it is better for you to show more
There is a little planning, but not that much
There is a little planning
If your margin is 50-60%
And you are saying here that there is a 6% tax
Or 8% tax, then you can be caught in scrutiny
Don't think that the government said
Show at least 6 or 8
So the government also has the option of scrutiny
It can also investigate
Accept the return
Okay, so I said
In this requirement, at least 50-55% will be saved
That's why we have shown 50% savings on both our bank and
cash sales
And then
We validated this sheet
We did one more thing by going down
Creator, debtor, inventory, cash, bank balance
We wrote 000 in them
And this sheet was validated
This was our book profits sheet
In the utility of ITR
You my dear friends