Declaration of Turnover

[Asked by Guest]

If I spends half portion of my total turnover for diesel like expenses ,can I show the rest half as my turnover while income tax filing( proprietor small scale) .if i do so what are the other parameters that i should arrange/take care to substantiate this

[Ganeshan Kalyani]

Sir the expenses related to business is eligible for deduction .

[DR.MARIAPPAN GOVINDARAJAN]

What is your turnover? 50% of the turnover is shown as expenses. What is the treatment given by you for the rest of 50% turnover?

AI Summary

Deductibility of business expenses: business-related costs are allowable but require proper allocation and documentary substantiation.
Whether a proprietor may report only a portion of gross receipts by treating the remainder as business expenses raises a reporting and substantiation issue: business-related expenses are allowable deductions, but their deductibility requires clear allocation, identification of total turnover, and contemporaneous records to substantiate both claimed expenses and the reported turnover.