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44AD for 8%

Jagdish (Article) (123 Points)

02 June 2011

Sir/Mam,

If an assess incurred loss on shares for Rs. 3 lac, and have turnover of Rs. 55 lac, and shows the profit of Rs. 2 lac.

Should he/she get audited his/her books of accounts?

any relief or exmption from it?

thanking whosoever rply.....

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20 Replies

nitin agnihotri (ca final +b.com(H)) (43 Points)
Replied 02 June 2011

only TO is considered

CA ADITYA SHARMA (CA IN PRACTICE ) (16719 Points)
Replied 02 June 2011

if profit is 2 lakh on 55 lakh turnover than audit is must

M. N. JHA (CA) (8316 Points)
Replied 02 June 2011

@ future ca. . . .are u sure brother because i dont think so any trader trade @ margin of 8%, i m not in aginst just want another confirmation.

Anshu Garg (working) (139 Points)
Replied 03 June 2011

acc. to sec. 44AD

IF TURNOVER IS BELOW 60,00,000/15,00,000 THEN SHOW OF PROFIT OF 8% OF TO IS COMPULSORY BUT IF ANYONE WANT TO SHOW A LOWER RATE PROFIT THEN HE MUST

1. AUDIT HIS ACCOUNTS AS PER SEC. 44 AB AND

2. MAINTAIN BOOKS OF ACCOUNTS AS PER SEC. 44AA IF HIS TI EXCEED THE MAX. LIMIT

SO ACC. TO MY VIEW AUDIT IS COMPULSORY.

CA Ashwani Agarwal (Practice) (3049 Points)
Replied 03 June 2011

Firstly, if a person is having a loss than he has to either show the loss correctly or he has to show his profit @ 8%. I didnt understand what is the use of shoeing profit of Rs. 2 lakhs.

So the options can be:

1. To show loss and get your accounts audited.

2. To show profit @ 8%.

Mukesh Kumar Singh (CA-FINAL) (4094 Points)
Replied 03 June 2011

SECTION 44AD IS AVAILABLE FOR RETAIL TRADERS AND CIVIL CONTUCTION COMPANIES WHOSE GROSS TOTAL TURNOVER DOES NOT EXCEED RS 60 LAKH.

Dhanya (nil) (62 Points)
Replied 03 June 2011

agree with mukesh......Sec 44AD doesn't deal with turnover on share trading....its about Civil construction contractors....As regards applicability of sec 44AB on share trading....turnover of Rs.60lac is taken into consideration..so in your case no need to conduct a tax audit.

shreyansh (C.A.) (105 Points)
Replied 03 June 2011

Ya of course, Audit is compulsory...

With effect from 01-4-2011, sec. 44AD apllies to all small buainesses whose turnover is less than rs. 60 lakhs & whos is not covered u/s 44AE....

But Now, I have question regarding applicability of TDS in Next Year.

Whether a person, whose books of accounts are audited u/s 44AD then is he liable to obtain TAN & deduct TDS in next year?

Jagdish (Article) (123 Points)
Replied 03 June 2011

I m not sure but I think assess should deduct.

CA YOGESH GARG GMG PLYWOODS (BUSINESS OF PLYWOOD and PARTNER IN GUPTA & MALHOTRA CHARTERED ACCOUNTANTS) (248 Points)
Replied 03 June 2011

Anshu garg view is absolutely correct

CA Ashwani Agarwal (Practice) (3049 Points)
Replied 03 June 2011

Originally posted by : mukesh kumar singh
	SECTION 44AD IS AVAILABLE FOR RETAIL TRADERS AND CIVIL CONTUCTION COMPANIES WHOSE GROSS TOTAL TURNOVER DOES NOT EXCEED RS 60 LAKH.

The Section has been amended and now every business can file his return as per SEC 44AD if his turnover is below 60 lakh except business u/s 44AE.

nikhil ((CA Final) Article) (363 Points)
Replied 03 June 2011

Originally posted by : yogesh garg
	Anshu garg view is absolutely correct

if you want to claim loss in share trading business then u have to follow procedure as anshu garg said .......

G K Agrawal (Director) (29 Points)
Replied 04 June 2011

The figures of Cash Balance, debtors, creditors and stock to be shown in ITR 4 or 4S should be for presumptive business alone or total of all cash balance including receipts from from other sources, salary, HP etc.