04 June 2012
Sir, As per section 44AD it is compulsory to show 8% income and if income is less then 8% then assessee has to gets its books of account audited. but in case where income of assessee is not exceeding basic exemption limit then whether audit will be required?????
04 June 2012
Sub-section 5 of Section 44AD provides that an assessee who claims lower profits than 8% AND whose income exceeds the exemption limit will be required to get his accounts audited.
Accordingly, an audit will be required if BOTH the conditions are satisfied:
1. The assessee claims profits lower than 8%, AND 2. His income exceeds the exemption limit.
If the assessee claims profits lower than 8% but his income does not exceed the exemption limit, he is NOT required to get his accounts audited.
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