44AD and 44ADA

This query is : Resolved

Guest

Guest (Querist)

03 June 2017 Persons opting for 44AD or 44ADA is not required to maintain books of accounts and documents.. Does that mean that they are not required to maintain proof of any expenditure or income??

Nikhil Kaushik

Nikhil Kaushik (Expert)
Follow

03 June 2017 they are expected to maintain record of gross receipts, bank statements etc.

Guest

Guest (Querist)

03 June 2017 do they need to maintain bills and receipts for expenses ??

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
Follow

14 July 2024 Proof of Expenditure and Income:
Maintaining Documents: While books of accounts are not required, taxpayers under Section 44AD and Section 44ADA must maintain proof of:

Income earned (such as invoices, bills, receipts, contracts, etc.).
Expenditure incurred (such as bills, invoices, vouchers, receipts, bank statements, etc.).
Verification: The tax authorities may ask for these documents during assessment or scrutiny to verify the income declared and expenses claimed.

Importance of Documentation:
Compliance Requirement: Proper documentation is crucial to substantiate the income and expenses reported under presumptive taxation.
Audit Requirement: If the income declared under presumptive taxation is less than the prescribed rate (e.g., 8% of turnover for Section 44AD), the taxpayer may be required to undergo audit under Section 44AB, and proper documentation will be necessary.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Summarize this with AI

ChatGPT Perplexity Claude Google AI Grok

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

Mukesh Singh

Shakthi

manojkumarkk

Sagar Khakhiwala

ajay agrawal

Subscribe Now

44AD and 44ADA

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

CA Final

Manager- Finance and Compliance

GST CONSULTANT

GST CONSULTANCY

Accountant

Article Assistant