Section 44ad.

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

20 July 2013 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.

◊This subsection talks of two cumulative conditions for applicability of 44AA and 44AB: -
i. The Income from eligible business is lower than 8% of Turnover or Gross Receipts,
AND
ii. The “TOTAL INCOME” exceeds the maximum amount not chargeable to tax.

If (ii) condi. not fulfilled then 44aa & 44ab not appli. and assessee will not have to pay tax.
What is total income includes
-only business income OR
-income from all sources after deduction??????

Ashish Kukreja

Ashish Kukreja (Expert)
Follow

20 July 2013 Total income includes income from all sources and arrived after claiming deductions under chapter VI-A..

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
Follow

20 July 2013 Agree with the expert.
.
Before the condition (ii) the connective used is "and" it has become the topic of every discussion held on Section 44AD.
.
So, your inference is right but the intention of law makers was some what different.
.

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

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

MAYANK

CA.Pinank Arvindbhai Shah

prakash takane

Vijay Singh

ashok jain

Subscribe Now

Section 44ad.

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

CA Final

Manager- Finance and Compliance

GST CONSULTANCY

Accountant

GST CONSULTANT

Senior Executive