Applicability of Sec 44AD of Income Tax Act

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If an assessee engaged in business of iron and steel trading and having a gross annual turnover of less than Rs 60 lakhs and wants to show profit of Rs 2lakhs, is it compulsory for him to get the tax audit done?

Replies (9)
YES IF THE NET PROFIT IS LESS THAN 8% THAN AUDIT IS MUST
Yes, if u show profit less then 8% of turnover. For example- mr. x total turnover rs. 50 lacs then profit should be show above rs 4 lacs to avoid tax audit. . . . If mr. X want to show profit less then 4 lacs then tax audit is compulsory.

yes i agree with future CA if u don't want to pay presumptive tax then Maintain Books of accounts and get audited

I do not agree with this.. Sub Section 5 of Section 44AD says that if you are showing profit lower than 8% and TOTAL INCOME of you is less than maximum exremption limit then you do not required to have TAX AUDIT.

In this case INDIVIDUAL & HUF are exepmt from this section 44AD if their TOTAL INCOME is below 160000 / 190000 / 240000. However PARTNERSHIP FIRMS and SMALL COMPANIES are covered under this section as they do not have any maximum exemption limit.

Agree with Mr. Prashant Nayak

Further wish to comments on it that "if your total income is below the exemption limit you need not to get the books of account audited but in that case reasonable books of accounts to be maintain to enable the A.O to compute the total income below the exemption limit"

 

Otherwise all assessee take the plea that his Total Income is below the Exemption limit and freed from Tax Audit

If that going ti happen, nobody get his books of account audited.

YES RIGHT SAID ABOVE...

I YOU WANT TO SHOW YOUR INCOME BELOW THAN PRESUMPTION BASIS INCONE ,THEN IN THIS CASE YOU HAVE TO DO TAX AUDIT COMPULSORY.

What if the partnership firm with a nominal turnover of Rs. 1,50,000/- maintaing books making a loss before partners remuneration & interest..??

Whether the firm need to get audited..??

Whether The firm can give interest & remuneration to Partners..??

if an assessee is having two business can it will be possible for him to file its income from one business on presumtive basis and other the normal course it means regular books of accounts

 


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