44ad expert opinion required

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

18 March 2015 Business comes under 44AD
t/o 35 lakh.
actual profit comes 1.75 lakh i.e. 5%.
.query is,
1. Whether audit required bcoz profit is below 8% ?
2. I think not required bcoz profit is below basic exemption limit i.e. 2 lakh, what u say ?
3. Whether requirement of books of a/c mandatory uner 44AA as t/o and profit exceed 10 lakh and 1.20 lakh ?
4. Whether this case comes under scrutiny if we declare above mentioned profit?
I ALWAYS CONFUSING IN THIS TYPE OF SITUATION.
THANKS IN ADVANCE.

Querist : Anonymous

Querist : Anonymous (Querist)

18 March 2015 Kindly reply........

CS Advocate Abhishek Goyal

CS Advocate Abhishek Goyal (Expert)
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19 March 2015 AS per the provisions of section 44AD audit under section 44AA is necessary if twin conditions are satisfied that is profit declared below 8% and total income exceeding taxable limit which is not your case so going by the provisions no audit is required. Maintenance of books u/s 44AA on a turnover exceeding 10 lakh applies only to professionals and not business. In case of business turnover limit for audit is Rs. 1 crore.

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Querist : Anonymous

Querist : Anonymous (Querist)

19 March 2015 Thanks abhishekji for reply.
What about evidence required regarding income/expense if ITO demands.

CS Advocate Abhishek Goyal

CS Advocate Abhishek Goyal (Expert)
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20 March 2015 In that case only option will be to state that the case is no accounts case u/s 44AD so no books are maintained but regarding expenses vouchers, bills etc wherever applicable may be preserved so that the same can be produced before the AO.

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