Section 44 ad

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Can there be tax audits for presumptive income u/s 44 Ad for company assessee?
Replies (12)
  • Audit of accounts is compulsory
    • In case of Business: – If Total Sales/ Gross Turnover exceeds Rs 1 Crore in any previous Year
    • In case of Profession: – If Gross Receipts exceeds Rs 25 Lakh in any previous Year
    • Assessees covered u/s 44AD/44AF/44BB/44BBB are also required to audit of accounts if they claim that their profit will be less than limit specified in respective section. e.g. u/s 44 AD Audit of accounts is required when two conditions are satisfied:-
      1. Claim lower profit than limit specified u/s 44AD (Limit of 8%)
      2. Total Income exceed basic exemption limit.
Company aseesee too?
sec.44 AD applies to Individual,HUF and firm other than LLP

Agreed with shivam also all the individual and HUF must be resident.

Any assessee (Individual, HUF, Partnership firm) who declares presumptive income u/s 44 AD should not require to get audited his books of accounts.

Tax audit covered u/s 44AB and i think Mr. Jaikishan is talking about clause d of section 44AB, where turnover of assessee is less than 1 crore and declares profit of less than 8% of turnover.

Please explain if i am wrong.


 
No rafeeque pathan.... need not to audit u/s 44AD
No rafeeque pathan.... need not to audit u/s 44AD
Clear with my query. Thanks you all sirji.

Following are the assessees not covered u/s44AD....

1) Individual who is not resident, 2)HUF who is not Resident 3) Association of Person

 4) Firm having non resident Status.5) A local Authority.6) A co-operative Society

 7)Limited Liability Partnership both Indian as well as Foreign.8) Companies both Domestic and Foreign comapny.9) Every Artificial Juridical Person.

 

So in your case being company assessee Need not to  Audit u/s 44AD.

Section 44AD applies to Individuals,HUFs,partnership firms (excluding LLP) .

It's nt applicable to assesssee who is availing deduction u/s 10AA or  chapter VIA

The scheme is applicable to any Business    excluding 44AE (for heavy vehicle business)  where turnover/receipts not exceeds 1 crore.

presumptive rate of Income = 8% such gross turnover or receipts

Need not to pay Adv tax and not needed to maintain books of accounts. 

But if turnover exceeds the limit of 1 crore, then asessee need to maintains books of account and also need to be audited. 

 

Thanks santhosh sir for detailed explanation.

I was talking about 44AB linked with 44AD as I interpreted in that way, however I didn't notice the word company that time and later on when other person told that 44AD is not applicable to companies, that time i realised about the same and agreed with the concerned person.

henceforth the answer given by the other people above are in confirmity with the same.


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