Sec 44ad urgent

This query is : Resolved

manish sharma (Querist)
Follow

19 March 2012 Dear members,

I have a query related to I Tax.A assesee his turnover of Rs.25 lac in a.y 2011-12 he is doing a business of trading if he show a profit less than 8% of turnover.will he audited the accounts by ca.

Can a assessee show a profit less than 8% of turnover if yes what provisions applicable for him.

Dintakurthi Tirumala

Dintakurthi Tirumala (Expert)
Follow

19 March 2012 As per the amendment to the section 44AD from A.Y.2011-12 all the business holders except who are covered under section 44AB required to show profit or 8% on gross turnover or gross receipts and they no need to maintain books under section 44AA. But those who have to offer lower income than the above prescribed are liable to the following.
1) They has to maintain the books under section 44AA and
2) They has to make tax audit under section 44AB if their total income exceeds the basic exemption limit and has to get the report under section 44AB.
Based on the above provision for your case to avail the lower income than limit prescribed under section 44AD you should be maintain the books under section 44AA and books could be audit under section 44AB if total income exceeds basic exemption limit. i.e for man individuals and hufs,AOPs,BOIs Rs.1,80,000 for female individuals Rs.1,90,000 for senior citizens Rs.2,50,000 and for very senior citizens Rs.5,00,000.
OM SAI SRI SAI JAI JAI SAI

CA Prashant Gupta

CA Prashant Gupta (Expert)
Follow

19 March 2012 as per sec 44AD if you want to show profit less than 8% of turnover then you must maintain books of accounts as per 44AA. as your turnover is 25 lac no tax audit needed.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now