In presumtive taxation for individual ,incase professional's gross receipts is less than 50 lakhs , then he/she can show fifyt percent or more of this gross as profit and pay income tax accordingly.There is no requirement to keep any book of accounts in this case. My question ...does the professional who is showing 50 percent expense ..does this money actually need to be withdrawn from the bank account? Or can he/she show net income as 50 percent of gross income eben though the 50 percent money has not been withdrwan from bank accounts?l
The presumptive taxation section (44AD) is a dangerous section if it is misinterpreted. It allows a small trader or a businessman to avoid maintaining books of account and instead, pay tax on a presumed profit. For this, the section has laid down a benchmark of 8% of turnover. However, if the tax payer has a profit which is actually higher than 8% of the turnover, then, he has to offer that higher amount and not 8% of the turnover as his profit.

Answer to your specific query is no.

Instead of doing any experiments, we suggest you to contact a professional CA and take his/her help in this matter.
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