Accounting u/s 44ad

Dear Members,

                     If the book profit on a turnover of Rs. 60 lac in 4 lac while u/s 44AD is 4.80 lac. In such a case, can the assessee book the additional profit of Rs. 80 thousand some where in books and than to capital account because he is actully paying Tax on 4.80 lac. 

                     Even though maintaining of books is not compulsory, even though he desires to maintain books. What should be the proper treatment in accounts.

 

Thank You.

Replies (1)
Originally posted by : Rohit Tulshyan

Dear Members,

                     If the book profit on a turnover of Rs. 60 lac in 4 lac while u/s 44AD is 4.80 lac. In such a case, can the assessee book the additional profit of Rs. 80 thousand some where in books and than to capital account because he is actully paying Tax on 4.80 lac. 

                     Even though maintaining of books is not compulsory, even though he desires to maintain books. What should be the proper treatment in accounts.

 

Thank You.

 

Eligible Business

The assessee should be engaged in any business except the business of plying, hiring or leasing goods carriages referred u/s 44AE.

Turnover

Total turnover or gross receipt in the previous year of the eligible business should not exceed an amount of rupees sixty lakhs.

Consequences if the above conditions are satisfied

If the above conditions are satisfied, the income from the eligible business is estimated at 8% of the gross receipt or total turnover.

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