44ad

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

02 April 2012
AS I KNOW THAT PERSON OPTING FOR 44AD DOES NOT REQUIRED TO PAY ADVANCE TAX.

SO IS THAT TRUE THAT HE IS ALSO NOT REQUIRED TO PAY INTEREST U/S 234B & 234C.

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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02 April 2012 Please be advised that provisions of advance tax ARE applicable to assessees covered under Section 44AD and 44AE.

Assessees covered u/s 44AD and 44AE HAVE to deposit advance tax.

They are NOT exempt from the provisions of advance tax.

Querist : Anonymous

Querist : Anonymous (Querist)

02 April 2012 Actually I have read this provision on many place. please click on the following link which says that person opting for 44AD is not liable to pay Advance Tax.

https://www.caclubindia.com/articles/new-section-44ad-text-and-discussion-9713.asp

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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03 April 2012 You are correct. 44AD(4) provides that the provisions of Chapter XVII-C shall not apply to an eligible assessee in so far as they relate to the eligible business, which means that provisions relating to advance tax shall not apply.

Accordingly, interest u/s 234B and 234C CANNOT be levied on such assessee.

However, interest u/s 234A is applicable.

Further, the exemption is NOT available to assessees covered u/s 44AE. Accordingly, such assessees have to deposit advance tax.

Querist : Anonymous

Querist : Anonymous (Querist)

03 April 2012 Thank you sir!!
One more doubt...
As person having less then 60 lacs turnover and showing less than 8% profit. Does he have to compalsarily get his accounts audited?
If 'yes' then due date is same 30th september or else?

Querist : Anonymous

Querist : Anonymous (Querist)

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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03 April 2012 Yes, in case an assessee shows a net profit of less than 8% then he has to maintain books of accounts and also get his accounts audited.

The due date will be 30th September.

Querist : Anonymous

Querist : Anonymous (Querist)

10 April 2012 If assessee's sale is less than 60 lacs and his profits are realy less than 8% and due date for tax audit is passed then what would be the consequences?

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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12 April 2012 In such case, penalty equal to one-half per cent of the total sales, turnover or gross receipts, as the case may be, or Rs. 1,50,000/-, whichever is less shall be levied u/s 271B.

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