The provisons of Sec.44AD(5) reads as follows:
Notwithstanding anything contained in the foregoing provisions of this section, an eligible assessee who claims that his profits and gains from the eligible business are lower than the profits and gains specified in sub-section (1) and whose total income exceeds the maximum amount which is not chargeable to income-tax, shall be required to keep and maintain such books of account and other documents as required under sub-section (2) of section 44AA and get them audited and furnish a report of such audit as required under section 44AB.
Take a case: A partnership firm is having an income say less than 8% of gross receipts and it has no other income.. after providing salary to working partner and interest on capital the firm incurs a loss in business..
My query is - in this case the total income does not exceed the maximum amount chargeable to tax.. (i.e business loss) do the client require to audit the books of account?
can anyone briefly explain this to me...?
CAclubindia
