Book of accounts for sole proprietor and sec 44ad

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

06 July 2012 I found that from the year 2010-’11, if a person has a turnover up to Rs.60 lakh and declares minimum 8 percent of the turnover as income, then there is no need to maintain any books of accounts for the purpose of income tax. Further, such an assessee is not liable to get his accounts audited.

1. Is it true that the sole proprietor does not have to keep books of accounts if he declares 8 % or more of turnover as income?

2. When is the due date for filing presumptive tax under Section 44AD and what is the form to be used.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)

06 July 2012 It has been prescribed that where you claim profits lesser than 8%, books of account is required U/s 44AA(2)(iv).
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It can be inferred from the above that BOA are not required where profit is declared @ 8%.
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In spite of above, it is always advisable to keep and maintain the BOA, as these will help in deducing the figures of Sundry Debtors, Sundry Creditors, Stock, Cash in Hand etc. and even turnover also.
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Applicable Form ITR 4S, Due Date 31.07.2012
for the AY 2012-13.
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