CA Jubair J Jeri (Practicing Chartered Accountant) (147 Points)
10 April 2018
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(160963 Points)
Replied 10 April 2018
Yes, if the aggregate income exceed basic exemption limit...... and sub-sec. 44AD(4) applicable.......
CA Mayur Todmal
(Practicing CA)
(7645 Points)
Replied 10 April 2018
Dear Sir,
How audit is applicable if not opting for presumptive taation .
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(160963 Points)
Replied 10 April 2018
Section 44AB ...
.....(e) carrying on the business shall, if the provisions of sub-section (4) of section 44AD are applicable in his case and his income exceeds the maximum amount which is not chargeable to income-tax in any previous year,...........
.......get his accounts of such previous year audited by an accountant before the specified date and furnish by that date the report of such audit in the prescribed form duly signed and verified by such accountant and setting forth such particulars as may be prescribed :
CA Mayur Todmal
(Practicing CA)
(7645 Points)
Replied 10 April 2018
| Originally posted by : Dhirajlal Rambhia | ||
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Section 44AB ... .....(e) carrying on the business shall, if the provisions of sub-section (4) of section 44AD are applicable in his case and his income exceeds the maximum amount which is not chargeable to income-tax in any previous year,........... .......get his accounts of such previous year audited by an accountant before the specified date and furnish by that date the report of such audit in the prescribed form duly signed and verified by such accountant and setting forth such particulars as may be prescribed : incometaxindia.gov.in/_layouts/15/dit/Pages/viewer.aspx |
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Tax audit will be applicable only he opts for presumptive i.e. 44ab r.w.s 44ad. If he is not going for presumptive taxation u/s 44ad no audit applicable u/s 44ab
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(160963 Points)
Replied 11 April 2018
Here the query was answered based on some presumptions, with the intention to keep on safer side.....
For exact solution all the parameters as per the attachment are required to be clarified.
Provisions to be applied if a person does not opt for the presumptive taxation scheme of section 44AD and declares income at a lower rate, i.e., at less than 8% A person can declare income at lower rate (i.e., at less than 6% or 8%), however, if he does so, and his income exceeds the maximum amount which is not chargeable to tax, then he is required to maintain the books of account as per the provisions of section 44AA and has to get his accounts audited as per section 44AB.
This is taken from income tax tutorials on the below mentioned site.
https://www.incometaxindia.gov.in/tutorials/13.%20tax%20on%20presumptive%20basis%20in%20case%20of%20certain%20eligible%20businesses.pdf
Can we rely on these these tutorials for clarifications?
CA Mayur Todmal
(Practicing CA)
(7645 Points)
Replied 11 April 2018
| Originally posted by : Madhavi Pandit | ||
|
Provisions to be applied if a person does not opt for the presumptive taxation scheme of section 44AD and declares income at a lower rate, i.e., at less than 8% A person can declare income at lower rate (i.e., at less than 6% or 8%), however, if he does so, and his income exceeds the maximum amount which is not chargeable to tax, then he is required to maintain the books of account as per the provisions of section 44AA and has to get his accounts audited as per section 44AB. This is taken from income tax tutorials on the below mentioned site. https://www.incometaxindia.gov.in/tutorials/13.%20tax%20on%20presumptive%20basis%20in%20case%20of%20certain%20eligible%20businesses.pdf Can we rely on these these tutorials for clarifications? |
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very strange
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(160963 Points)
Replied 11 April 2018
" Can we rely on these these tutorials for clarifications?"
Yes, till last assessment year.
Finance bill 2017 made some amendment in section 44AD, where in sub-section 44AD(4) (interpreting the same view, as above) has been made stricter by not allowing to opt sec. 44AD for following 5 years, but without proper drafting..... For which ICAI has raised the concern with authority.
But till clarification available, its always better to be on safe side.
CAclubindia
