24 September 2015
8% Limit on the gross receipts shall be compared either with book profit or income ultimately taxable under the head "Profit or gain from business or profession" after making all the adjustments?
24 September 2015
I want the explaination in detail. For Example: A has an income of Rs.65 lakhs from business, but showing book profit of Rs.4 lakhs (below 8% limit) but in computation sheet after all additions the taxable income is 7.5 lakhs? whether he is liable for tax audit?
25 September 2015
As he is showing more than 8% taxable income no need for tax audit. You may be booking actual expenses in the books which may have reduced your profit but for tax workings u/s 44AD no expenditure will be allowed. By adding all such expenses in tax workings your profit for tax working may be more than 8%.
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