Applicability of 44AD

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PS (Querist)
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11 July 2011 Please let me know if all of my following understandings are correct w.r.t to an individual assessee being covered under Sec. 44AD and therefore eligible to file returns under the Sugham form.

1. From AY 2011-2012 many professions including technical consulting, engineering services are covered under Section 44AD ( Ref. Section 44AA)

2. Individual assessees need to declare their income as a figure that is >= 8% of the Gross receipts.

4. Individual assessees need to maintain books to be able to prove that his gross receipts are his stated figure.

5. Individual assessees whose gross receipts is < 15L are NOT required to get their books audited and need not be able to prove that their profits/income is indeed only 8% of their receipts.

PS (Querist)
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11 July 2011 6. If the gross -receipts are > 15L, they need mandatory auditing to be able to prove that the stated figure is indeed their actual income.

PS (Querist)
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11 July 2011 7. The real beneficiaries therefore are individuals, HUFs are firms whose gross receipts are less than 15L ...they can simply declare their income as 8% of their receipts.

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