21 July 2010
As Per newly inserted section 44AD, if turnover below 60 lakhs, declare profit lower than 8%, he is required to maintain books of account and get it audited u/s 44AB of the Act. It seems that if his total income is below exemption limit of tax, he is not required to maintain books of A/c. and similarly not to get it audited u/s. 44AB irrespective of his turnover. My query is that Total income is after deduction under chapter VIA or not, in this context. Suppose total income is Rs. 1 lac and turnover is Rs. 45 Lacs, the person is required to maintain and get accounts audited u/s. 44AB or he is exempted from section 44AD of the Act.
21 July 2010
According to Section 44AB books of accounts are required to be maintained u/s 44AA if the turnover is 60 lakhs and above. In case an assessee declaring income on presumptive basis under section 44AD then accounts should be maintained only if he claims lower profit than the presumptive income ie lower than 8% of the gross receipts/turnover.
12 June 2011
The person having turnover less than Rs. 60 Lakh and declaring total income not less then 8% is not required to maintain Book of account. In case does not fall under this and hece required to maintain Books of accounts.- sureshjain.nj@gmail.com
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