44AD

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Nanu Gupta (Querist)

19 February 2017 For FY 2015-16 Turnover - 63 lacs Profit claimed - 4.8 lacs ITR filed Audit not carried out Is this the right treatment? Is he liable to get his accounts audited? Now the assessee wants to get his books of accounts certified from a CA in order to submit the same to the band so as to apply for a CC loan. kindly guide in this matter. Regards

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

19 February 2017 It is a right treatment and not liable for tax audit. For the purpose of bank loan CA can certify the profit as per books of accounts no problem.

Nanu Gupta

Nanu Gupta (Querist)

19 February 2017 "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." Isnt it covered under the above mentioned section 44AD(5)??

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

19 February 2017 Yes you are right it is covered u/s 44AD(5). I thought you have declared 8% profit.

Nanu Gupta

Nanu Gupta (Querist)

19 February 2017 so he has to get his accounts audited right?? And a CA should not certify his accounts for bank loan, isnt it?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

20 February 2017 Yes accounts to be audited and CA can certify his accounts for bank loan.

Nanu Gupta

Nanu Gupta (Querist)

20 February 2017 My dilemma is whether a CA should certify such books of accounts which has not been audited yet and requires to be audited. Does certifying such accounts whch are not audited yet is the right treatment? kindly guide.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

20 February 2017 Tax Audit and certification for bank loan both are independent. Certification can be done without tax audit.

Nanu Gupta

Nanu Gupta (Querist)

20 February 2017 Thank you sir, for your valuable respone.

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