If the turnover is below 60 Lakhs then assessee is NOT required to get his accounts audited

Originally posted by : aNkuR jAin....................
	If the turnover is below 60 Lakhs then assessee is NOT required to get his accounts audited

AGREED.

if an assessee has the turnover below 60 lakhs and show net profit below8% then the assesse need not require to get his accounts audited.

Originally posted by : amit kumar sadh
	Qus -   if an assessee has the turnover ( traing & job work)  below 60  lacs and maintained proper books of account and show net profit below 8%  ( assessee is not covered under 44AD & 44AE) , will he be liable to get his account audited U/s 44AB  if yes then  pls mention section / rules where it is written. Pls reply urgently thanking you amit

SIR , YOUR QUESTION SEEMS NOT FEASIBLE.

AS W.E.F F.Y. 2010-11 , A NEW SECTION - 44AD IS APPLICABLE WHICH COVERS ALL BUSINESSES EXCEPT AS DEFINED IN SECTION - 44AE.

IN CONTEXT OF PROVISIONS OF SECTION 44AD , IF TURNOVER DOES NOT EXCEED 60 LACS AND ASSESSEE SHOWS PROFIT LESS THAN 8% THEN AUDIT UNDER SECTION - 44AB IS COMPULSORY.

(IN CASE OF INDIVIDUAL ASSESSEE , IF NET PROFIT AMOUNT DOES NOT EXCEED MAXIMUM AMOUNT CHARGEBLE TO TAX THEN TAX AUDIT WILL NOT BE APPLICABLE EVEN IF PROFIT SHOWN IS LESS THAN 8%)

Originally posted by : amit kumar sadh
	Qus -   if an assessee has the turnover ( traing & job work)  below 60  lacs and maintained proper books of account and show net profit below 8%  ( assessee is not covered under 44AD & 44AE) , will he be liable to get his account audited U/s 44AB  if yes then  pls mention section / rules where it is written. Pls reply urgently thanking you amit

Amitji,

since you are confident that assessee is not covered u/s 44AD 44AE, question of 8% does not arise.

but since i think any business is covered and your's is a prop. concern you may be covered plz check

in the abovesaid eligible business whether service like Accounting, catering, interior decoration covered or not kindly explin me

Originally posted by : amit kumar sadh




Qus -   if an assessee has the turnover ( traing & job work)  below 60  lacs and maintained proper books of account

and show net profit below 8%  ( assessee is not covered under 44AD & 44AE) , will he be liable to get his account audited U/s 44AB  if yes then  pls mention section / rules where it is written.

Pls reply urgently

thanking you

amit

 




SIR , YOUR QUESTION SEEMS NOT FEASIBLE.
AS W.E.F F.Y. 2010-11 , A NEW SECTION - 44AD IS APPLICABLE WHICH COVERS ALL BUSINESSES EXCEPT AS DEFINED IN SECTION - 44AE.
IN CONTEXT OF PROVISIONS OF SECTION 44AD , IF TURNOVER DOES NOT EXCEED 60 LACS AND ASSESSEE SHOWS PROFIT LESS THAN 8% THEN AUDIT UNDER SECTION - 44AB IS COMPULSORY.
(IN CASE OF INDIVIDUAL ASSESSEE , IF NET PROFIT AMOUNT DOES NOT EXCEED MAXIMUM AMOUNT CHARGEBLE TO TAX THEN TAX AUDIT WILL NOT BE APPLICABLE EVEN IF PROFIT SHOWN IS LESS THAN 8%)

My view

The intention of the department was not to cover all biz which show below 8% to be tax audit.

Reasons:

1) If they intended they wud have directly amended the section 44AB a)limit is 60 lacs b) below 60 lacs and show profit less than 8% then 44AB applicable.

2) The widening of 44AD to all business is to promote small enterprises do take this a sopportunity to get taxes paid.

We mistake this and think it is amended like 44AD ll control all provisions and all r covered by 44AD if go below 8%.

But do read PCC income tax paper suggested answers from institute. 1st question itself related to this and it is said in it show below 8% then tax audit.