14 June 2011
Please explain Section 44 AD ..is it mandatory?My doubt is if my turnover is below 60 lacs and i declare a profit more than 8% without opting 44AD ie,with a balance sheet and a P/L.Whether my business is liable to audit u/s 44AB?
14 June 2011
In case you show profit more than 8% section 44AD provides you the right to claim so without audit. In this case you know that ITR 4S is applicable in which the details of Sundry Debtors & Creditors, Stock in Trade and Cash Balance etc are required.
It seems that Department wants to utilise its resources in the matters related with big tax payers rather than the small assessees by framing such taxation schemes.
We should also limit our eagerness to produce the information to the rquired extent only. It is a rule in taxation practice that whatever is demanded, should be given only.
So you have to compulsorily file your return U/s 44AD now.
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