Audit required
This query is : Resolved
29 July 2012
Dear Sir
My father has a plastic business and the total sales turnover is Rs.35 lakhs but if we deduct the expenses the net profit i sless than 8 percent....IS Audit compulsory
pls advice urgently
My father has a plastic business and the total sales turnover is Rs.35 lakhs but if we deduct the expenses the net profit i sless than 8 percent....IS Audit compulsory
pls advice urgently
29 July 2012
Unless you do not apply cosmetic surgery on the Profits of Plastic Business , by showing them at the level of 8%, audit is necessary.
.
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29 July 2012
Sir
As per 44AD (5) Audit is required if my total income is more than 2.5laks for which is the maximum chargable limit
My total income is coming as 2.48lakhs
) Notwithstanding anything contained in the foregoing provisions of this section, an eligible assessee who claims that his profits and gains from the eligible business are lower than the profits and gains specified in sub-section (1) 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
As per 44AD (5) Audit is required if my total income is more than 2.5laks for which is the maximum chargable limit
My total income is coming as 2.48lakhs
) Notwithstanding anything contained in the foregoing provisions of this section, an eligible assessee who claims that his profits and gains from the eligible business are lower than the profits and gains specified in sub-section (1) 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
29 July 2012
@ Siddhartha
Oh!! your father has become a senior citizen ??
.
In the absence of any information regarding the age of the assessee earlier, it is generally assumed that the assesee showing income U/s 44AD is of or around 44. It can not easily be presumed that he is a Super Senior Citizen/ Senior Citizen.
.
However, many many thanks for you to reproduce the text of Section 44AD(5) as the wordings of this sub-section supports your view.
.
I also support your view that he is not liable for tax audit.
.
But, in practical life we suggest our clients to pay Tax of Rs. 3000/- as peace of mind is not cheaper then the sum of Rs.3000. It is wise to pay tax because your father will be relieved from the burden of Scrutiny and hidden costs by just paying Rs.3000 /-as tax.
.
Oh!! your father has become a senior citizen ??
.
In the absence of any information regarding the age of the assessee earlier, it is generally assumed that the assesee showing income U/s 44AD is of or around 44. It can not easily be presumed that he is a Super Senior Citizen/ Senior Citizen.
.
However, many many thanks for you to reproduce the text of Section 44AD(5) as the wordings of this sub-section supports your view.
.
I also support your view that he is not liable for tax audit.
.
But, in practical life we suggest our clients to pay Tax of Rs. 3000/- as peace of mind is not cheaper then the sum of Rs.3000. It is wise to pay tax because your father will be relieved from the burden of Scrutiny and hidden costs by just paying Rs.3000 /-as tax.
.
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