Section 44ae

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VIRENDRA SONI (Querist)

14 January 2012 IF GROSS RECEIPTS OF BUSINESS COVERED U/S 44AE EXCEEDS 60,00,000/- AND HE DOES NOT OWN MORE THAN 10 HEAVY VEHICLES AND HE MENTIONED HIS PROFIT MORE THAN THE LIMIT PRESCRIBED IN SEC 44AE. IS HE REQUIRED TO GET AUDITED HIS ACCOUNTS U/S 44AB OF INCOME TAX ACT, 1961?

CA Prashant Gupta

CA Prashant Gupta (Expert)

14 January 2012 If the number of heavy vehicles does not exceed 10, evenif turnover exceed Rs. 60 lacs then no need to be books audited u/s 44ab because 44ae refer to the overriding effect to section 28 to 44ad, which covers 44ab.

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CA PARAS BAFNA

CA PARAS BAFNA (Expert)

14 January 2012 If you will refer sub section (5) of Section 44AE you will find that the monetary limits of Gross Receipts or Turnover as prescribed U/s 44AB (i.e. 60 lacs) shall be arrived after excluding the GR/ Turnover of Section 44AE.
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In your case if whole of the Turnover is consisting of Transport Receipts only then the 44AB turnover will be NIL and as such Tax Audit is not required.

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CA Dileep Surya Kumar

CA Dileep Surya Kumar (Expert)

14 January 2012 If you offer presumptive income more than the amount prescribed u/s 44AE, then there is no need to comply provisions of sec.44AB.

i.e Audit is not required in this case irrespective of turnover.

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CA Deepak S

CA Deepak S (Expert)

14 January 2012 The basic condition for computing tax u/s 44AE is that the assesse does not own more than ten goods carriages. In my opinion if he has less than ten goods carriages no need to get the accounts audited u/s 44AB even if the gross receipts exceeds 60 lakhs. However, if he wish to declare the income less than the amount calculated u/s 44AE, he has to get his accounts audited u/s 44AB

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