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U/s 44ad

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This query is : Resolved

Dinesh Gupta (Querist)

26 September 2012 Sale Rs.5987480./- profit is 122650.00, as per section 44AD sub sec 1 & 5 can laibler for audit or not? because I Read in book if taxpayer maintain books of account profit excess that limit than laible to audit. i.e. in my case profit lower than exdeed limit so not laible to audit? pls clear this.

Amol S Joglekar

Amol S Joglekar (Expert)

26 September 2012 if assessee opts for 44AD, he needs to go by minimum8% profit. Alternatively, if his profit is below 8%, he needs to get his accounts audited. The section says that if the profit is below the maximum amount not chargeable to TAX. (I think many a people are taking this sentence in a negative sense.) this AND clause is added because, the income is below taxable, then the return is deemed to have NEVER been filed....... So aperson having a turnover of just below 44AB limits and income below taxable limit and still not getting accounts audited is carrying a great RISK.

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