Ref u/s 44ad of income tax act

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

10 August 2011 from the query i know that audit a/cs of my client who is already filed the ITR4 with out audit declaring 5% of profit,without adding the Sec 44AD.can i suggest him now to get a/cs audit and file the revised return with audit report before 30th sept ? if there is any penalty provisions for doing so ?

U S Sharma

U S Sharma (Expert)

10 August 2011 if you file audit report within the stipulated time and revise the return, then at 1st instance no penalty will be imposed, provided the income does not change.

However if the file is selected for regular assessment then such acts would be defined as concealment and avoidance of rules.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)

10 August 2011 The client has filed the return without your knowledge, let him take the decision whether he wants to get his accounts audited or not?

Penalty is only 150000/- or half percent of turnover whichever is less, but it is for -not getting accounts audited.
If he gets his accounts audited he can be saved from penalty.

You can file revised return in this case if the client has filed his return on or before 31.07.2011 by showing 8% profit U/s 44AD , which will not attract any penalty.