Zing Zang is an individual, manufacturing a product. He has turnover of ₹ 98,50,000 which is inclusive of amount of ₹ 25 lakh received through electronic clearing system. The accounts are not properly maintained and you have advised him to pay tax u/s 44AD of the Act. On how much income he will pay tax for A.Y. 2020-21 :
A. ₹ 7,88,000
B. ₹ 7,38,000
C. Manufacturers not allowed u/s 44AD
D. ₹ 5,91,000
Answer:B
Zing Zang is an individual, manufacturing a product. He has turnover of ₹ 98,50,000 which is inclusive of amount of ₹ 25 lakh received through electronic clearing system. The accounts are not properly maintained and you have advised him to pay tax u/s 44AD of the Act. On how much income he will pay tax for A.Y. 2020-21 :
A. ₹ 7,88,000 B. ₹ 7,38,000 C. Manufacturers not allowed u/s 44AD D. ₹ 5,91,000