Can i prepare it return u/s 44ad?

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

27 December 2011 my client is a civil work contractor but he is not maintaining any books of account

he gets at-least 20,00,000 to 22,00,000 gross receipts per year

1) how can he file the IT Returns

2) can i prepare IT Return U/s 44AD?
if yes
if he get any scrutiny in future what type
of document should we produce?

Mihir

Mihir (Expert)
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28 December 2011 you can file return u/s 44AD.

In case of scutiny you need to justify the gross receipts ..since u r not maintainig any accounts, bank statements will be a basic document..u may maintain a receipt register

CMA Arif Farooqui

CMA Arif Farooqui (Expert)
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28 December 2011 u can filed return u/s 44AD. but u should maintain book of account as per section 44AB

Prakash Kochar

Prakash Kochar (Expert)
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29 December 2011 No need to maintain any sort of regular books of accounts: If a person declares profit u/s 44AD @ 8% or more of his gross receipts or gross turnover then he will not be required to maintain any sort of regular books of accounts for the purpose of Income Tax Act
But it is advisable that some temporary books of accounts like sale books or day books etc., must be maintained so as to prove that the assessee has gross turnover or gross receipt below Rs. 60 lakhs and he is eligible to get benefit of section 44AD.

If the assessee has been maintaining books of account or other records under any other law say under VAT or sales tax law then such books may be produced (if needed) before AO to prove that the gross receipts are below Rs 60 lakhs.

Following documents may be provided to AO to prove the turnover?
• - copies of invoices issued during the PY
• - copies of cash memo
• - copies of Purchase bill
• - Bank statement
• - Inventory details, if any maintained
• - Average G.P rate applicable to Particular business
• - Returns filed under sales tax/vat/excise/service Tax laws.

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