AKSHAY ARUNKUMAR BAJAJ (PROP) (49 Points)
13 July 2011If any person showing income as per Section 44 AD and also maintain books of accounts, but there is difference in the profit as per Section 44 AD and books of accounts i.e. profit as per books of account is less than profit shown in return as per Sectio 44 AD then where we can adjust the difference amount in books of accounts?
C.A DEEPTHI
(student)
(179 Points)
Replied 13 July 2011
SEC 44AD is a presumptive sec in which tax is paid @ 8% of total turnover or higher sum as declared by assessee but if you have less in books you need to maintain books as per sec 44AA and get it audit as per sec 44AB(only if income exceeds maximum amount not chargeable to tax) when assessee has less profit you can go for it .
Anshul Shukla
(Article assistant)
(63 Points)
Replied 14 July 2011
As per Section 44 AD of i tax 1961 if an assessee is having turnover less then 60 lakh then he have to show profit of 8 % on persumtive basis and if he want to show profit lower then 8 % then he have to maintained proper books of accounts and gets those books of accounts audited.
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