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. .
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.
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. .
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