44 ad (5)

 Please solve my query 

As per section 44 AD (5)
My total income should not exceed the income chargeable to tax
If I am a proprietor and my income from business is Rs 2,20,000 for FY 2014-2015 and my other income is 60,000.

So do I need to get audited u/s 44AB 

Replies (3)

(5) Notwithstanding anything contained in the foregoing provisions of this section, an eligible assessee who claims that his profits and gains from the eligible business are lower than the profits and gains specified in sub-section (1) and whose total income exceeds the maximum amount which is not chargeable to income-tax, shall be required to keep and maintain such books of account and other documents as required under sub-section (2) of section 44AA and get them audited and furnish a report of such audit as required under section 44AB.

 

That is . you are required to get it audited if you claim that your profits from such eligible business is LESS THAN 8% of the Turnover (So that your claim can be verfied)

& if your income is taxable

[Suppose your income as per 44AD is 180,000 and you claim it to be 150,000 and after including other income its 200,000, then still there is no tax liability on you and hence there shall be no need for audit]

Your income from business is Rs.220000 , right..if you are claiming that it is less than 8% of your total turnover, then u need to get ur books audited u/s 44AB because your total income i.e. 280000 exceeds the basic limit. So in simple, here ,if your business turnover is Rs. 22 lakhs or less , no need to do tax audit , but if ur turnover is more than that limit 22 lakhs u need to get ur books of accounts audited u/s 44AB. ( turnover is calculated based to your business profits )....Thanks
Your income from business is Rs.220000 , right..if you are claiming that it is less than 8% of your total turnover, then u need to get ur books audited u/s 44AB because your total income i.e. 280000 exceeds the basic limit. So in simple, here ,if your business turnover is Rs. 22 lakhs or less , no need to do tax audit , but if ur turnover is more than that limit 22 lakhs u need to get ur books of accounts audited u/s 44AB. ( turnover is calculated based to your business profits )....Thanks

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