Section 44ad.

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

20 July 2013 EXPERTS,

-An assessee with T/O below Rs. 10000000/-
-Who shows an income below presumptive rate of 8%,
will,in case his total income exceeds the taxable limit be required to maintain books of accounts and get them audited.

HERE TOTAL INCOME MEANS NET TOTAL INCOME FROM ALL SOURCES OR ONLY BUSINESS INCOME WE SHOULD CONSIDER.

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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20 July 2013 in case if sec 44AD is availed then no need to maintain books of a/c and even no need for audit.

income means income from business only.

Querist : Anonymous

Querist : Anonymous (Querist)

20 July 2013 IF NOT AVAILED 44AD(i.e. NOT PAID 8% OF TURNOVER) AND TOTAL INCOME IS BELOW TAXABLE LIMIT OF RS. 2,00,000/- REF. 44AD(5) PLEASE.

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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14 August 2013 1. As per Section 44AD(5) an assessee who claims income less than 8% of turnover AND whose TOTAL INCOME EXCEEDS the MAXIMUM AMOUNT NOT CHARGEABLE to tax is required to get his accounts audited.

In case of loss, the total income DOES NOT EXCEED the maximum amount not chargeable to tax.

Accordingly audit is NOT required to carry forward loss.

2. Total Income means total of income from ALL sources and NOT just business income.
Section 44AD(5) uses the word Total Income.

Total Income has been defined in Section 2(45) and means ALL income earned by the assessee from ALL sources.

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