Sec 44aa & 44ad

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

22 June 2014 Is it necessary to claim 44AD if turn over is less than 1 crore or an asseessee can claim profit as computed on the basis of books of accounts maintained by him even if profit is less than 8% of turn over as shown by books of accounts
Eg-turn over 50 lakh
profit 3 lakh
and accounts has been maintained by assessee so can he claim profit to be 3 lakh and not use 44AD and as he is not using 44AD conditions of 44AD of audit of a/cs if profit declared is less than 8% then accounts to be audited shall not be voilated too. So can he show profit of 3 lakh with out audit being done

Nikhil Kaushik

Nikhil Kaushik (Expert)

23 June 2014 1. it is not an option. once you are covered under 44AD, either you offer profit at 8% or above or claim lesser profit after maintaining books of accounts under 44AA and getting the audit done under 44AB.

2. if you want to show profit at 3 lakhs on a 50 lakhs turnover, books of accounts and audit is compulsory

Rupesh Jain

Rupesh Jain (Expert)

23 June 2014 your actual profit is less than@ 8% of turover and turnover is less than Rs. 1 crore then you declare the profit @8% under the section 44AD.

but when your turnover is exceed Rs. 1 crores even profit is more than 8% then you have to take aduit on your accounts u/s 44AB

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