Applicability of Section 44AB

This query is : Resolved

BAL KRISHAN GARG (Querist)
Follow

08 March 2010 Dear All ,
A had done job work during 2008 - 09 worth slightly more Rs. 40.00 Lacs and having proprietory business having Tin No. of total Turnover Rs. 3 Lacs agreegating Rs. 43 Lacs approximately .
Whether I should apply the provisions of Section 44AD and calculate 8 % of total job work as A's Income and profit as per profit and loss account for the proprietorship business and file the return of A ?
Or should I go for tax audit u/s 44 AB and make the books for both business seperately and audit of them and file the return now ? Whether the penalty provisions of not filing of audit report will apply in this case as no hard copy is to be filed with the department ?
I request you all to suggest me the best way to go .

Thanks to all

( BAL KRISHAN GARG )
my e-mail id : gargbk2001@yahoo.com

CA PRIKSHIT GUPTA

CA PRIKSHIT GUPTA (Expert)
Follow

08 March 2010 if your gross receipt is over 40 lacs than you have to maintain books and got audited. there is no question of apply 44AD and declare 8% profit. Penalty can be imposed by the IT department as no audit report is submitted till now.

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