Section 44AD
This query is : Resolved
09 June 2011
If an individual having income below basic exemption carrying eligible business has profit from business less than 8% of turnover. Is he eligible for tax audit?
09 June 2011
Dear Soumya,
If a Incivisual haveing income from eligible business below the max. amount not chargeable to Tax. (i.e. 1.8 lakh,1.9lakh or as a case may be)than the provision of sec 44AD shall not apply on such income.
Hope this information is helpful to you.
With Regards,
If a Incivisual haveing income from eligible business below the max. amount not chargeable to Tax. (i.e. 1.8 lakh,1.9lakh or as a case may be)than the provision of sec 44AD shall not apply on such income.
Hope this information is helpful to you.
With Regards,
09 June 2011
Point is whether his income on presumptive basis exceeds basic exemption limit or not? If no, then audit is not required even if his income is less than8%. If yes, then audit is required.
Message likes :
1 times
09 June 2011
Sorry Mr. Jha, I am not agree with your above interpretation.
The Language of the Act is as follows :
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.
the Act speaks about the profit lower than 8% but dont say that calculation of the max. amount which is not chargeable to income tax, should be on the basis of 8%.
so if the actual income is less than the limit than a assessee doesnt fall under the provision of Sec. 44AD.
With Regards,
The Language of the Act is as follows :
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.
the Act speaks about the profit lower than 8% but dont say that calculation of the max. amount which is not chargeable to income tax, should be on the basis of 8%.
so if the actual income is less than the limit than a assessee doesnt fall under the provision of Sec. 44AD.
With Regards,
Message likes :
1 times
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- About TDS & Income Tax
- Section 194JA & JB Income which ITR Form to use
- Pass word to open justification report for Q1 for FY 2026-27
- Scrutiny and reopening of past returns
- PPF interest-As Exempt Income disclosure
- Booth for sales promotion
- F & O PROFIT REPORTING FOR AY 2026-27
- Type of Capital Gain
- FEMA regulation Act. for inward remitance
- Rental income of jointly held property
- TDS on Rent received on redevelopment of building
- Tax on Deemed Capital Gain
- Indian IT Portal issue in computing tax as per UK-India DTAA
- Capital Gains on sale of residential flat
- Upload Level ValidationITR3Category of Defect B/D
- PF Taxable Income
- Clarification on Tax Audit Applicability and Reporting of F&O Transactions in ITR-3
- Interest credited in FY2025-2026 & TDS therein by EPFO does not reflect in AIS or Form 26AS
- 44ad eligble money lending interest
- Taxation in the hands of Landowner under JDA
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
