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Querist : Anonymous

Querist : Anonymous (Querist)

23 May 2011 I am a retailer having t.o last year rs.55 lacs + stock rs.6 lacs.
do i need to get account audited ?

do i less expenses from gross profit ?

do its effect new sec.44ad to declared 8% profit and calculate on tax directly ?

waiting sirs,

thanks

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)

23 May 2011 If you declare profit @ 8% of Rs. 55/-lacs, no need to audit your accounts under section 44AB.

Querist : Anonymous

Querist : Anonymous (Querist)

23 May 2011 so, what should i have to do sir,

get account audited or declared @ 8% profit on 55 lacs & pay IT 28325/- as on ?

if i am not declaring then what happened sir ?

U S Sharma

U S Sharma (Expert)

23 May 2011 44AD does not ask anybody to declare lower income upto 8% but the assessee has to declare their natural income which is above 8%, in case of below 8% taxable income the assessee is compelled to get his books audited under 44AB

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Querist : Anonymous

Querist : Anonymous (Querist)

23 May 2011 thank you very sirs for reply
but my query is still open

pls kindly open this link

https://www.caclubindia.com/experts/income-tax-return-audit-671480.asp

Aashok Kumar Sharma online

Aashok Kumar Sharma

(Expert)

25 July 2025 Answers to your queries:

Do you need to get your accounts audited?

Yes, since your turnover is Rs. 55 lakhs plus stock Rs. 6 lakhs (total approx Rs. 61 lakhs), which is above the Rs. 60 lakh limit, tax audit under Section 44AB is mandatory.

You must get your accounts audited by a Chartered Accountant.

Do you deduct expenses from gross profit?

Yes, you calculate net profit by deducting expenses from gross profit, and taxable income is based on net profit.

Does Section 44AD allow you to declare 8% profit and pay tax directly?

Section 44AD allows presumptive taxation only if your turnover is Rs. 2 crores or less.

However, if your turnover exceeds Rs. 60 lakhs, you must get your accounts audited and cannot opt out of the audit by using Section 44AD.

So, you cannot use Section 44AD presumptive scheme if turnover exceeds Rs. 60 lakhs.

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