44ad confusion

8000, because it is beneficial for us(tax benefit 1200)

Generally, To relieve assessee from Maintenance of Books of account and easeline assessment process, Section 44AD is introduced which says- Offer 8% or More as Presumptive Income. Presumptive means: It is presumed by IT Dept, that approxiamately minimum 8% of Turnover would be Income of assessee. So if such presumption is wrong i.e if your profit is more than 8% of Total Turnover then it is your responsibility to show such higher percentage as Income u/s.44AD. If you contend that my Income is below 8% then offer such Income as Normal business Income and such Income exceed Basic exemptionl limit then you have to maintain books of accoutn u/s.44AA.

Agree with CA.Neha Guptha

if u claim ur income is below  8%. You will liable to tax audit

Claiming below 8% alone does not case obligation to carry Tax audit u/s.44AB. Two things must be considered. 1.Offer less than 8% as Presumptive Income AND 2. Your income after considering all heads exceeds Basic Exemption Limit i.e Maximum Amount Not Chargable to Tax. Then you are liable for Both Tax audit u/s.44AB and Maintenance of Books of accounts u/s.44AA. But if you are firm, In most of the cases,  you are subject to tax audit u/s.44AB as Maximum amount not chargable to tax for Firm is "NIL"

Obviously you are correct and  understanding levels are good. This is good intention. If you are earning more than Eight % then offer such higher percentage as Presumptive Income. Same words you will found at act also.