Special business with out books under 44ae, 44ad

Save Share

This query is : Resolved

T.V.Srinivas

T.V.Srinivas (Querist)

13 July 2018 Sir one of my client is an agent receiving commission from AIRTEL (telecom) for doing activity of Selling recharge cards
For AY-18-19 he has received commission of Rs 3,62,313, and TDS was deducted u/s 194H and his total sales for the period FY 17-18 is 1,38,29,800 (more than 1cr)
can he file income tax return by opting special business-44 AD/AE with out books

will he liable to get his books of accounts audited will he comes under TAX AUDIT
pleas give me your suggestions
pleas help me

sofi gowher

sofi gowher (Expert)

13 July 2018 Since the reciepts are less than 2 crores tax audit is not required.if ur client opts 44AD his tax liability will be 6%/8% and if he claims his income is less then he has to go for tax audit and maintain proper books of accounts.The income from such business is not enough hence he should opt for tax audit.

Message likes : 1 times

T.V.Srinivas

T.V.Srinivas (Querist)

13 July 2018 what are the books that are to be maintained in such case
is it mandatory to get books audited by a CA, even though there is no any expenditure?
can i show all the amount of commission received (as amount reflected in 26AS) as income and file the return with out tax audit?

sofi gowher

sofi gowher (Expert)

13 July 2018 In case the client dosn't opt for tax audit his incomewill be 6%/8% of total turnover and his tax liability will be much more.To reduce the tax ,audit is nessary.maintain purchases book,sales book,cash book and bank.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now