Section 44 AD
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
03 April 2011
Do a Wholeseller also covered under Section 44 AD for the Assesment Year 2012-13
04 April 2011
Yes they are covered.
Querist : Anonymous
Querist :
Anonymous
(Querist)
17 April 2011
Thanx Sir,
But margin in Wholesale Business is between 3%-4%,
so it means Wholeseller become liable for Audit, if he wants to show profit below 8%, however the Annual sale is Rs.25 Lac.
But margin in Wholesale Business is between 3%-4%,
so it means Wholeseller become liable for Audit, if he wants to show profit below 8%, however the Annual sale is Rs.25 Lac.
17 April 2011
If he is having a turnover of 25 lakhs and net profit of 4%, then his total income will be1 lakh which is below the minimum total income liable for taxation. In this case section 44AD will not be applicable. See Section 44AD(5)which is reproduced as follows:
(5) Notwithstanding anything contained in the foregoing provisions of this section, an eligible assessee who claims that his profits and gains from the eligible business are lower than the profits and gains specified in sub-section (1) and whose total income exceeds the maximum amount which is not chargeable to income-tax, shall be required to keep and maintain such books of account and other documents as required under sub-section (2) of section 44AA and get them audited and furnish a report of such audit as required under section 44AB.
(5) Notwithstanding anything contained in the foregoing provisions of this section, an eligible assessee who claims that his profits and gains from the eligible business are lower than the profits and gains specified in sub-section (1) and whose total income exceeds the maximum amount which is not chargeable to income-tax, shall be required to keep and maintain such books of account and other documents as required under sub-section (2) of section 44AA and get them audited and furnish a report of such audit as required under section 44AB.
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