44ad amendment applicability

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

10 August 2011 A assessee has a biz TO of 50lacs. As per new amendments all biz is covered under 44AD. Assessee has accounts maintained. is it that 44AD applicable to him? else he can proceed as normal biz and compute as profit from biz?

Note: profit is 2.75 lacs. (less than 8% of 50lacs)

Is 44AD section gets applicable to all case or its an option of assessee to choose for preseumptive taxation?

As per amendments assessee need to gets books audited only if he opts for 44AD and has profit less than 8%. Right?

else all those ppl who have profit less than 8% need to get audited?

MAHENDRA KUMAR BAGRECHA

MAHENDRA KUMAR BAGRECHA (Expert)

10 August 2011 Hi,

Section 44AD is applicable to all the eligible business and 8% profit has to declare.If assessee is declaring 8% profit, they need not to maintain any books of accounts and If assessee is declaring less than 8%, he has to get his accouts audited.

Querist : Anonymous

Querist : Anonymous (Querist)

11 August 2011 If a new biz is setup in the form of partnership and has incurred loss with no sales...then its below 8% den it also need to be audited?

CA Ashwani Agarwal

CA Ashwani Agarwal (Expert)

11 August 2011 There are 2 conditions:-

1. Profit less than 8%.

2. Income less than exemption limit.

In partenrship as there is no exemption limit or it is 0. So if your income is in negetive then no need to get your accounts audited.

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