04 September 2011
Now this sections 44AF is transferred into 44AD.It was presumptive tax accounting system.To show minimum @5% Net Taxable income of Gross turnover was must.In the remaining 95% all deductions including depreciation is consider.In case of Partnership firm the Book Profit {before Appropriation A/c)not less than 5%.If any trader to show less than 5% income, he must to make Tax Audit.It means to maintain compulsory books of account those who show profit less than 5%. Small traders menas not turnover more than 40 Lacs.The Trading activities means only to sale,deal not manufacture, process business.Retail Resale of any goods, not cover wholesale. Now to declare profit more than 8% is compulsory.Otherwise to maintain Books and make tax audit report by Qualified Chartered Accountant.
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