Section - 44 AD Subsection (5)
I have a Doubt here ?????
The assessee is bound to get the books of accounts audited, only if the following two conditions are satisfied:-
1. His profits and gains from the eligible business are lower than the profits and gains specified in sub-section (1) i.e. his net profit is lower than 8% of turnover.
2 Whose total income exceeds the maximum amount which is not chargeable to income-tax.
Though the proposed provision is applicable from assessment year 2011-12 but if for example and to understand the effect of this provision we presume the minimum amount which is not liable to tax is Rs. 1.60 Lakh and the turnover of the eligible business is Rs. 28 Lakhs and the Net profit is Rs. 1.32 lacs which comes to only 4.71% hence the first condition for the compulsory audit is there but since the income is only Rs.1.32 Lakhs hence the second condition of section 44AD(5) is not complete, hence the audit is not mandatory.
If whatever mentioned above is the intention of law then in most of the cases where the income of the assessee is below taxable limit, they are not required to get their books of accounts audited, even if the rate of profit is below 8%,
Is it possible to do so? and the same is as per law ?
Tds Already Deduct by bank rs 7590 on Pension income.
On the basis of data Tax audit required if i used last year 44ad.