44ad

This query is : Resolved

Dhinesh (Querist)
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23 March 2012 As my client is a super stokist in Milk. he earns Re.1/- litre of milk. If i put him in 44AD has is has to pay tax at 8% on Total turnover. Actually he earns only 3% only. Any exemption is available for those super stokist.
waiting for your valuable suggestions.

Dintakurthi Tirumala

Dintakurthi Tirumala (Expert)
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23 March 2012 You can offer lower income than specified in section 44AD but you should be maintain books of accounts as per section 44AA and if the total income exceeds basic exemption limit as per your books income i.e actual earning income you should be make tax audit as per section 44AB.
So for your case if you want to offer 3% of profit(your actual earning) you should be maintain books of accounts as per section 44AA and in case such income exceeds basic exemption limit tax audit under section 44AB has to be make.
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