Comments on : New Section 44AD - Text and Discussion

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Comments on New Section 44AD - Text and Discussion

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YOGESH

Wrote on 21 May 2011

Thanks for Providing the information in Detail manner..

Sir The software ITR4 has arrived. I think there are 2 mistakes in 44AD matter.In P/L row 51 the word 2009-10 should be replaced by 2010-11. Then in Schedule BP row 4 the figure should not come from 33(xii) but should be filled in manually. Kindly check. G.K.Agrawal

G K Agrawal

Wrote on 17 May 2011

Dear Mr. Amol Thanks for your reply which is very informative. G.K.Agrawal

Amol Gopal Kabra (CA,CS,DISA)

Wrote on 17 May 2011

@ Avinesh - the assessee need not prove anything unless the department has an evidence to the contrary. But for the safer side, you may just maintain the sales day book, if required to prove. No need to keep other books of accounts.

Amol Gopal Kabra (CA,CS,DISA)

Wrote on 17 May 2011

@ Dharun - You need to give the cash balance as per your cash book.

Anivesh

Wrote on 17 May 2011

Hi Mr. Amol, I would like to how the assessee will prove his turnover is less than INR 60 lakhs. Does he have to maintain books of account to this extent and also your views on him computing capital gains. Thanking you for an early reply.

Dharun

Wrote on 17 May 2011

mine is a partnership firm. i'm maintaining regular books of accounts. since i've incurred loss, going by 44AD. now in ITR 5 while filling cash balance shall i fill the balance as per balance sheet or should i prepare a separate cash flow for this purpose?

Amol Gopal Kabra (CA,CS,DISA)

Wrote on 16 May 2011

@ SHAH DILEEPKUMAR - The interpretation is not like that. It says that if the turnover is below and income is below the minimum taxable income level, then no need to file the return and this section is not applicable. Here it means that in case of turnover below Rs. 60 lakhs and "presumptive income" below basic exemption, then no need of this section. Just for example, if turnover is Rs. 18 lakhs, then income as per this section shall be Rs. 1.4 lakhs. In this case it wont matter even if the assessee shows the income as Rs. 1.2 lakhs or anywhere below Rs. 1.44 lakhs as if the presumptive level of income itself is not taxable, the department has no concern on this case. I hope you are clear on this.

Amol Gopal Kabra (CA,CS,DISA)

Wrote on 16 May 2011

@ sonal lath - I think you have not given the full information here. But still on the basis of the information i have here are the answer to your queries - 1. If you are doing household job, i.e. business, it shall be eligible business. 2. If your total turnover is less than Rs. 60 lakhs, then you can claim the exemption from maintenance of books of accounts u/s 44AD. 3. You have not given your turnover, so i cant comment on the income as given by you, i.e. Rs. 1.2 Lakhs.

Amol Gopal Kabra (CA,CS,DISA)

Wrote on 16 May 2011

@ G. K. Agrawal 1. In case of loss from eligible business , you have to maintain books as beer 44AA and also audit as per 44AB. Further, the Return of Income is also to be submitted within the due date. 2. If there is brought forward business loss, it will be set off with the business income of current year even if it is from presumptive income , i.e. 44AD. 3. If there is loss from one business and presumptive income from second business and after making intra-head adjustment, if the result is loss again, then it shall be carried forward to next year.