Py 12-13 turnover 80 lacs- profit<8%-tax audit ??
This query is : Resolved
29 June 2013
Hello everyone,
one of my client has turnover of Rs.80 lacs in the previous year 2012-13
his net profit is 500000 (<8%)
he do not want to opt 44AD because he wl have to get his accounts audited.
My question :
can i file his return in ITR4 form without getting books of accounts audited ?
waiting for the views of the experts.
one of my client has turnover of Rs.80 lacs in the previous year 2012-13
his net profit is 500000 (<8%)
he do not want to opt 44AD because he wl have to get his accounts audited.
My question :
can i file his return in ITR4 form without getting books of accounts audited ?
waiting for the views of the experts.
29 June 2013
Convince the client by telling that-
.
As you do not want to opt 44AD by showing 8% of the turnover as net profit Audit is required U/s 44AB(d)
.
Being a CA, we have to guide our clients properly as well as we have to protect our professional interest also.
.
If you want to file ITR-4, you have to file the return after Tax Audit.
.
If you opt for ITR-4S, client has to pay tax on 640000/-.
.
Make a cost analysis and show the client whichever is more beneficial.
.
.
As you do not want to opt 44AD by showing 8% of the turnover as net profit Audit is required U/s 44AB(d)
.
Being a CA, we have to guide our clients properly as well as we have to protect our professional interest also.
.
If you want to file ITR-4, you have to file the return after Tax Audit.
.
If you opt for ITR-4S, client has to pay tax on 640000/-.
.
Make a cost analysis and show the client whichever is more beneficial.
.
30 June 2013
thanks for ur reply sir.
if i m not filing my return u/s. 44AD then it is not compulsory to show net profit >=8%.
i do not want to for section 44AD and want to to file itr4(books of account maintained) then since my turnover is less than 1 crore i am not liable for audit although my profit is less than 8% of turnover.
please clarify.
if i m not filing my return u/s. 44AD then it is not compulsory to show net profit >=8%.
i do not want to for section 44AD and want to to file itr4(books of account maintained) then since my turnover is less than 1 crore i am not liable for audit although my profit is less than 8% of turnover.
please clarify.
30 June 2013
It is Section 44AD which compel to show profit @ 8%, whether you want or do not want.
.
Every eligible business is covered under this section and as such it has become a mandatory provision. Question of opting or not opting does not remain a matter of choice.
.
Choice under this section has been provide as-
1. Show 8% net profit ; File ITR 4S.
2. Get Books of Accounts Audited if you do not like option 1 and file ITR 4.
.
.
Every eligible business is covered under this section and as such it has become a mandatory provision. Question of opting or not opting does not remain a matter of choice.
.
Choice under this section has been provide as-
1. Show 8% net profit ; File ITR 4S.
2. Get Books of Accounts Audited if you do not like option 1 and file ITR 4.
.
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