30 August 2014
If Gross Receipts of the assesee(company) is less then twenty five lakh and profit is less then eight percent on total receipts then it will fall under which section?
30 August 2014
He will fall under Section 44AD. However if his income exceeds the maximum amount not chargeable to tax then he is required to maintain books of accounts and get hid accounts audited
31 August 2014
Refer Section 44AD(5). Audit will be compulsory only if the assessee shows income less than 8% of gross receipts AND his income EXCEEDS the maximum amount chargeable to tax.
If his income does NOT exceed the exemption limit then audit is NOT required even if the assessee declares profit less than 8%.
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