Sec 44ad & 44aa

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This query is : Resolved

CA Harish Singh (Querist)

03 July 2012 An Assessee who file his return u/s 44AD and show his profit more than 8% of turnover. Is there any mandatory to file B/s & P/L alongwith his return and sec44AA is being applicable for him.

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)

03 July 2012 Once an assessee is covered u/s 44AD, he is NOT required to maintain books of accounts and is also not required to get his accounts audited.

Sicne Section 44AD taxes income on presumptive basis, an assessee covered u/s 44AD is NOT required to submit P&L and Balance Sheet with the return.

CA Harish Singh

CA Harish Singh (Querist)

03 July 2012 Does 44AA have overiding effect on 44AD?

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)

03 July 2012 Please read sub-section 2 of Section 44AA which provides that an assessee who is covered u/s 44AD is required to maintain books of accounts only if he claims profit less than 8% AND his income exceeds the exemption limit.

Section 44AA DOES NOT have over ridng effect over ANY section, including Section 44AD.

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