SECTION 44AD OF INCOME TAX ACT

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Rohit Choudhary (Querist)
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05 December 2010 A PROP.FIRM CARRYING ON BUSINESS OF WHOLESALE TRADING OF GARMENTS IS COVERED THIS SECTION.
IS IT COMPULSORY TO SHOW INCOME ON PRESUMPTIVE BASIS @ 8% ON GROSS RECEIPTS.
IF PROFIT IS SHOWN BELOW @8% WOULD THAT MEANS
THE PROP. FIRM NEEDS TO GET ITS BOOKS AUDITED?

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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05 December 2010 A PROP.FIRM CARRYING ON BUSINESS OF WHOLESALE TRADING OF GARMENTS IS COVERED by new Section 44AD w.e.f AY 2011-12 IF TURNOVER DOES NOT EXCEEDS Rs 60 LACS. IT IS COMPULSORY TO SHOW INCOME ON PRESUMPTIVE BASIS @ 8% ON GROSS RECEIPTS.
IF PROFIT IS SHOWN BELOW @8% THAT MEANS
THE PROP. FIRM NEEDS TO GET ITS BOOKS AUDITED.
TURNOVER LIMIT FOR TAX AUDIT IS 60.00LACS.

CA Punit

CA Punit (Expert)
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06 December 2010 right..
below 60 Lacs turnover, if less than 8% income is returned, then audit is required.

Pankaj Jhawar

Pankaj Jhawar (Expert)
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14 January 2011 w.e.f next year whether it will be appliacle to all biz instead of retail only....

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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14 January 2011 Yes, It will be applicable for eligible assessee carrying on eligible business.
Eligible Assessee:
*
Resident-* Individual, HUF, Firms,
......
who are not claiming deduction u/s 10A,10AA,10B,10BA, Chapter VIA heading C -
Deduction in respect of Certain Income like 80H TO 80RRB.

***
Eligible Business:

1. Any business except the business of plying , hiring, or leasing goods carriers (44AE)

2. Turnover does not exceed Rs. 60.00 lac

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