44aa & 44ab
Querist : Anonymous
whether liable to maintain accounts as per section 44aa
whether liable for audit under section 44ab
both are connect with each other or not ?
please explain
If a person carrying on business / profession and income from such business/ profession has exceeded 1,20,000 in any of the three Previous Years (p.y.) or current p.y. (for newly set up business)
If turnover / gross receipts has exceeded Rs 10 lacks in any of the three p.y. or current p.y. (for newly set up business)
For business set up in p.y. 12-13 and during that year turnover has exceeded 10 lakhs or income has exceeded 1,20,000 , a person should maintain books of accounts.
SO if assessee has income lower than basic exemption limit or loss , he can show profit less than 8% without maintaining books of accounts.
Sec 44 AB : AUDIT OF ACCOUNTS
Person carrying on business and total sales, turnover or receipts has exceeded 1 crore rs. In p.y.
Person carrying on profession and gross receipts has exceeded 25 lacks rupees.
In previous year Where assessee is showing profit under presumptive taxation u/s 44AA, 44BB, 44BBB, he is showing lower profit than prescribed in those sections .
Where assessee is showing profit under presumptive taxation u/s 44AD , he is showing lower profit than prescribed in that section and DURING THAT PREVIOUS YEAR HIS INCOME EXCEEDED THE BASIC EXEMPTION LIMIT.
SO if assessee has income lower than basic exemption limit or loss , he can show profit less than 8% without making his account audited..
Querist : Anonymous
but if i am in tax audit under 44 ab
so do i need to select 44aa
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