44ad
abhishek agarwal (237 Points)
21 November 2016
What is the meaning of basic exemption limits in proviso of section 44AD Rs. 2,50,000 or 8% of turnover
rohit singhal
(ca)
(24 Points)
Replied 21 November 2016
U/s 44AD of Income Tax Act An assessee can file his return on the declared income of Not less than 8 % of total turnover.
for Example:
If Net Turnover = 37,50,000
then Declared Income Can not be less then 3,00,000(8% of turnover)
Hence Tax on income Would be as Folllows:
On First 250000=0
on rest 50000=5000(10%)
Hence Net Tax payble =5000
abhishek agarwal
(237 Points)
Replied 22 November 2016
CA VIRAL SANGHVI
(Finance head)
(681 Points)
Replied 22 November 2016
Yes if the income of the assesse is less than 8% than he/she has to make his/her books of accounts audited.
CAclubindia
