44AD and ITR3
This query is : Resolved
22 August 2022
I have Business income under 44AD wherein profit is more than 8% declared and long term Capital gain.
Now I can not file ITR4S but have to file ITR 3 due to CG.
While filing ITR 3 one question is there in form for 44AA applicability for maintenance of books if I mark it as yes and only show 4 figures utility does not accept and ask for all the figures of P&L and Balance sheet.
If I declare all the figure rather than only 4 figures then it does not allow me to show under head 44ad but as normal income.
I have to declare in 44AD only or else it would amount that I am opting out of 44AD and then subsequently for all future year have to file ITR3 with all figures.
Please provide assistance on this part.
Thank you.
Now I can not file ITR4S but have to file ITR 3 due to CG.
While filing ITR 3 one question is there in form for 44AA applicability for maintenance of books if I mark it as yes and only show 4 figures utility does not accept and ask for all the figures of P&L and Balance sheet.
If I declare all the figure rather than only 4 figures then it does not allow me to show under head 44ad but as normal income.
I have to declare in 44AD only or else it would amount that I am opting out of 44AD and then subsequently for all future year have to file ITR3 with all figures.
Please provide assistance on this part.
Thank you.
22 August 2022
For applicability for maintenance of books you need to mark it as ...........NO
23 August 2022
Dear Sir
I have turnover more than 25 lac and even income taxable more than 2.5 lac.
In actual 44AA is applicable to me. Still should I select No?
Will it not amount to disclosure of in accurate particulars?
I have turnover more than 25 lac and even income taxable more than 2.5 lac.
In actual 44AA is applicable to me. Still should I select No?
Will it not amount to disclosure of in accurate particulars?
23 August 2022
You are correct when the profit or loss is declared under normal assessment. But as per Sub-sec. 44AD(4) & (5), if you declare the income u/s. 44AD, you are not liable to maintain books of accounts as per sec. 44AA(2) of the act...
Extract of Sec. 44AD(5) ...
" Notwithstanding anything contained in the foregoing provisions of this section, an eligible assessee to whom the provisions of sub-section (4) are applicable and whose total income exceeds the maximum amount which is not chargeable to income-tax, shall be required to keep and maintain such books of account and other documents as required under sub-section (2) of section 44AA and get them audited and furnish a report of such audit as required under section 44AB"
Extract of Sec. 44AD(5) ...
" Notwithstanding anything contained in the foregoing provisions of this section, an eligible assessee to whom the provisions of sub-section (4) are applicable and whose total income exceeds the maximum amount which is not chargeable to income-tax, shall be required to keep and maintain such books of account and other documents as required under sub-section (2) of section 44AA and get them audited and furnish a report of such audit as required under section 44AB"
23 August 2022
FAQ :: Q. 10 ::: If a person adopts the presumptive taxation scheme of section 44AD, then is he required to maintain books of account as per section 44AA?
Section 44AA deals with provisions relating to maintenance of books of account by a person engaged in business/profession. Thus, a person engaged in business/profession has to maintain books of account of his business/profession according to the provisions of section 44AA.
In case of a person engaged in a business and opting for the presumptive taxation scheme of section 44AD, the provisions of section 44AA relating to maintenance of books of account will not apply. In other words, if a person adopts the provisions of section 44AD and declares income @ 8%/6% of the turnover, then he is not required to maintain the books of account as provided under section 44AA in respect of business covered under the presumptive taxation scheme of section 44AD
From: https://incometaxindia.gov.in/Pages/faqs.aspx?k=FAQs+on+Tax+on+Presumptive+Taxation+Scheme
Section 44AA deals with provisions relating to maintenance of books of account by a person engaged in business/profession. Thus, a person engaged in business/profession has to maintain books of account of his business/profession according to the provisions of section 44AA.
In case of a person engaged in a business and opting for the presumptive taxation scheme of section 44AD, the provisions of section 44AA relating to maintenance of books of account will not apply. In other words, if a person adopts the provisions of section 44AD and declares income @ 8%/6% of the turnover, then he is not required to maintain the books of account as provided under section 44AA in respect of business covered under the presumptive taxation scheme of section 44AD
From: https://incometaxindia.gov.in/Pages/faqs.aspx?k=FAQs+on+Tax+on+Presumptive+Taxation+Scheme
24 August 2022
Thank you for taking the time to reply this.
I will do it and will update when it gets successfully processed.
I will do it and will update when it gets successfully processed.
24 August 2022
You are welcome..
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