Tax

income tax - i have 1 lakh rupee in my account income tax - i have 1 lakh rupee in my account

1 year ago

sir i have 1 lakh rupee in my account if i send this amount to my friend he will return it as 1 lakh and 4 thousand rupee as interest and i have done like this for 100 times so finally in my account the total amount will be 5 lakhs (1lakh +(4000*100 times as profit)) so how the income tax will be calculated they will calculate it only for my profit or for the total transaction amount(1 lakh *100 times = 1 crore)

Kishan Dutt Kalaskar

Responded 1 year ago

View All Answers
A.Dear Sir,
The Income Tax will be calculated only on your profit and not on total transaction. You may approach chartered accountant for more clarification since it is financial transaction and you must take legal advise from him.
Helpful
Helpful
Share

Post Your Matter Post Your Matter

Talk to a Lawyer Talk to a Lawyer

Ask a question Ask a question

Vidhi Samaadhaan Vidhi Samaadhaan

Anik

Responded 1 year ago

View All Answers
A.Dear Client,

Income taxes are based on the gross profit that your business earns after subtracting operating expenses from gross revenue.
Helpful
Helpful
Share

Post Your Matter Post Your Matter

Talk to a Lawyer Talk to a Lawyer

Ask a question Ask a question

Vidhi Samaadhaan Vidhi Samaadhaan

Read Related Answers

question iconJoint buyers in under construction property, help with 26QB
Dear Client, TDS is applicable on the purchase of immovable property wherein the sale consideration of the property exceeds or is equal to ₹ 50,00,000 (Rupees Fifty Lakhs). TDS @ 1% should be deducted...
question iconAmount paid to a friend as drawings from a Propritory Business Concern
Dear Client, A business account in a Bank typically known as a Current account is a kind of bank account maintained by businessmen, corporations and trusts who have a large number of transactions. A...
question iconIT returns
Dear Client, An unintentional mistake in the IT Return may be rectified by filing a revised return. For better clarification and steps, you need to visit a Chartered Accountant or an I T Consultant to...
question iconRegarding claim of TCS on Foreign Tour Package
Dear client, The TCS charge would increase the amount you are paying for the total trip. Under the new regulations, a 5% TCS is applicable to foreign travel. Please ensure that while filing your IT...
question iconWill income tax department will ask for tax
Dear client, As per the income tax benefit for financial year 2023-2024, you will not be charged for transfer for housing loan. However, you may be entitled to tax benefits. You may be exempted from...