Turnover Definition As Per Income Tax Act

As per section 44ab of the income tax act an assessee whose turnover from profits and gains from business or profession exceeds rs.

Turnover definition as per income tax act. However in the absence of any other definition of turnover gross receipts provided in the act it leads to different perspectives and interpretations. 26 may 2008 the word turnover when it is not specifically defined in the act would actually assume the meaning that the consideration received must be for the sale of goods and it must be available with the assessee for being turned over or in other words it must come to the asses see s till as the money belonging to him. The term turnover has been defined under section 2 91 of the companies act 2013 as follows. Meaning of turnover under section 44ab.

As per the provisions of the section 44ad certain percentage of turnover will be considered as deemed income for profit or gain from business and professional pgbp. What is the definition of turnover as per companies act. The meaning of turnover sales for the purpose of tax audit is discussed as follows. 2 91 turnover means the aggregate value of the realisation of amount made from the sale supply or distribution of goods or on guidance note on tax audit under section 44ab of the income tax act 1961 21 account of services rendered or both by the company during a financial year 5 4 in the guidance note on terms used in financial statements.

The aggregate amount for which sales are effected or services rendered by an enterprises. Section 44ad of income tax act 1961 is the presumptive taxation scheme. According to section 2 91 of companies act 2013 as amended by the companies amendment act 2017 turnover means the gross amount of revenue recognised in the profit and loss account from the sale supply or distribution of goods or on account of services rendered or both by a company during a financial year. The said definition can be borrowed.

The term turnover has not been defined under the income tax act 1961. In the guidance note on terms used in financial statements published by icai the expression sales turnover has been defined as. Thirdly the term turnover is not defined in the schedule or in the definition section 2 of the act. 1 00 00 000 during the financial year shall mandatorily get its books of accounts audited under the said section.

This was introduced for ease of taxpayers. So as per gst law it is consider as aggregate turnover.