Section 44ad

This query is : Open

RAMDEVA RAM JYANI (Querist)
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30 May 2017 Dear Sir, please clarify the following situation relating to applicability of Tax Audit

1. Turnover for P.Y. 2016-17 is Rs. 90,00,000.00, and net profit for the year amounts to Rs. 4,50,000.00 and all the books as per sec 44AA are maintained will there be requirement to get the Accounts audited?

2. Turnover for P.Y. 2016-17 is Rs. 90,00,000.00, and net profit for the year amounts to Rs. 1,60,000.00 and all the books as per sec 44AA are maintained will there be requirement to get the Accounts audited?

CA Rashmi Gandhi

CA Rashmi Gandhi (Expert)
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31 May 2017 In both case you have to get audited your accounts as income is less than 8% of receipts.

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RAMDEVA RAM JYANI

RAMDEVA RAM JYANI (Querist)
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31 May 2017 Thanks Rashmi Mam
I am agree with your opinion but I discoursed this issue with many CA's and they said that in second case the Gross total income of the assessee is less then basic exemption limit so Audit not required.
so please explain that Gross total income for this purpose is taken as per Section 44AD (8% of turnover) or as per books maintained by assessee (like 160000 in this case)

CA Rashmi Gandhi

CA Rashmi Gandhi (Expert)
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31 May 2017 You have to take gross total income equal to 8% if you dont want to get audited ur a/c. You can also go for 160000 but for that u have to get ur accounts audited

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