Section 44ad of income tax act

Tax queries 184 views 3 replies

Mohanty N

26 Points Joined July 2016

Dear All,

I need your help with regards to following few questions related to Section 44AD of IT Act.

Whether the assesse can open a bank account if it is adopting Section 44AD?
Is opening of bank accounts can be treated as maintaing books of accounts under this section?
If s/he opens the bank account can the assessee deposit money from the sources of the eligble business?
If the assessee deposits in the bank account from the eligible business can that be treated as a parameter for maintenance of books of accounts and disqulaifies from the application of the said section 44AD?
If the assessee is maintaing books of accounts under Rule 6 of TN Vat Act 2007, whether that can be considered under this section as maintaing books of accounts, complying to the said Section 44AD?

Kindly post all your valuable support........

Replies (3)

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

207976 Points Joined July 2016

"If the assessee is maintaing books of accounts under Rule 6 of TN Vat Act 2007, whether that can be considered under this section as maintaing books of accounts, complying to the said Section 44AD?"

Even if you have been maintaining books of accounts for VAT department, etc. It will not disqualify the eligibility for IT section 44AD. Only criteria is Eligible asseessee, eligible business with not more than 2 Cr. TO from Ass Yr. 2017-18. Other answers are:

1. Yes 2. Not for disqualifying, but for justification of Turnover.

3. Yes. 4. Again not for disqualifying.

Mohanty N

26 Points Joined July 2016

Dear Dhiraj Sir,

Thank you for your early reply.

Further to your clarifiction, kindly clarify the following.

If the IT department established the fact of TAX LIABILITY from the books of accounts (Normally maintained by the firm) is higher than the TAX LIABLITY calculated under section 44AD then what will be the consequences?

Kindly need all of you valuable comments.................