Ref u/s 44ad of income tax act

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

08 September 2011 one has filed a return of AY 11-12 on 02-08-2011 (due Date 31/7/11) declaring a income from business of192000/-.His Turnover is3893600/-.The returned income is below 8%
After filing the return he note the 44Ad Section ( dec income @8%) and met me.
I have suggested him to file the revised return by declaring 8% of profit and pay the tax applicable.
I am I correct ? Mainly i am dealing only VAT cases.
there is any penalty provisions for doing so ? Plz

CA Ashwani Agarwal

CA Ashwani Agarwal (Expert)
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08 September 2011 a belated return cannot be revised and since the return is belated in your case so it cannot be revised.

Querist : Anonymous

Querist : Anonymous (Querist)

08 September 2011 belated ? we may file it before 31.03.2012

CA.E.Deepan Chakravarthy

CA.E.Deepan Chakravarthy (Expert)
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08 September 2011 I agree with Agarwal sir. It cannot be revised and it is to be audited. Your client has to face penal consequence for not auditing the case u/s.44AB.

CA Ashwani Agarwal

CA Ashwani Agarwal (Expert)
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08 September 2011 Yes you can file it before 31.03.2013 infact but the due date was 31.07.2011 and any return filed after that date is known as belated return u/s 139(4) of Income tax act and the same cannot be revised.

Querist : Anonymous

Querist : Anonymous (Querist)

09 September 2011 just think, if income is changed we filing revised ITR by paying taxes with interests.

just like he declaring the profit @ 8% and paying the taxes.then what is the purpose of audit ?