Sec. 44ad, 44ab

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

20 March 2012 CAN ANY ONE GIVE ME GUIDANCE REGARDING SEC 44AD AND SEC 44AB IF
(i) BOOKS OF ACCOUNT MAINTAINED
(ii) BOOKS OF ACCOUNT NOT MAINTAINED

Dintakurthi Tirumala

Dintakurthi Tirumala (Expert)

20 March 2012 From A.Y.2011-12 those business holders whose gross turnover or gross receipts exceeds Rs.60 lacs Should be make Tax audit as per section 44AB and who not liable for section 44AB tax audit are should be offer their income 8% on gross receipts as per section 44AD except those cover under section 44AE. Who are liable for tax audit u/s 44AB are should be maintain books of accounts under section 44AA and who covers and offers income u/s 44AD no need to maintain books of accounts u/s 44AA. Those who liable to section 44AD but he wants to offer lower income than prescribed in such section should be maintain books of accounts u/s 44AA and make tax audit u/s 44AB if his total income exceeds the basic exemption limit.

If the gross turnover not exceeds the Rs.60 lacs and books of accounts not maintained then he should be of income as per section 44AD i.e 8% on gross turnover(no choice to offer lower than such income). If books of accounts maintained can be offer lower income than 8% and may be liable to tax audit u/s 44AB depending of case facts(i.e total income exceeds basic exemption limit).

If the gross turnover exceeds the Rs.60 lacs should be make tax audit and should be maintain books of accounts and no choice to not maintaining of books and offering income under section 44AD. I think you understand it now other wise post your doubt in my explanation i give clarify.
OM SAI SRI SAI JAI JAI SAI

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