Query in relation to sec 44ad

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

01 March 2014 The following queries are related to Partnership firm carrying on eligible business as per sec 44AD

1) In case Partnership firm having Turnover of Less than 1 Crores and claiming loss, is it necessary to conduct Tax Audit u/s 44AB, as the income offered is less than 8 % of Gross Receipt as per Provision of Sec 44AD.

The provision of section of the 44AD is reproduced below:-
“1) Notwithstanding anything to the contrary contained in sections 28 to 43C, in the case of an eligible assessee engaged in an eligible business, a sum equal to eight per cent of the total turnover or gross receipts of the assessee in the previous year on account of such business or, as the case may be, a sum higher than the aforesaid sum claimed to have been earned by the eligible assessee, shall be deemed to be the profits and gains of such business chargeable to tax under the head “Profits and gains of business or profession”.
(2) ………..:
(3) ……….:
(4) ………..:
(5) 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”

Nikhil Kaushik

Nikhil Kaushik (Expert)
Follow

01 March 2014 for partnership firms there is no exempted limit, therefore if you want to claim profits at a rate lesser than 8%(including loss) you have to get the audit done under 44AB

Message likes : 1 times

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now