Doubt on sec44ad

Section 44AD has been inserted inthe Income-tax Act to replaceexisting sec.44AD 744AF.
The new Section will be aplicable to any business ( whether it is Retail trade,or Civil construction or any other business)

The provisions of this  Section will be applicable if the following conditions are satisfied:

1.Assessee eligible for the purpose of this Section has to be an Individual/a HUF/a Partnership Firm( not being a LLP);
2.The assessee has not claimed any deduction u/s.10A,10AA,10B,10BA,80HHto 80RRB in the relevant Assessment Year;
3.The is not engaged in the business ofplying,hiring,or leasing goods carriages referred to u/s. 44AE; and
4. Total Turnover/ Gross Receipt of the Assessee in the previous year should not exceed Rs. 60.00 lakhs.

THUS THE PROFIT SHOULD BE SHOWN AT 8% OF THE GROSS RECIPT AND THERE IS NO PROVISON OF 12.5% OF GROSS RECIPT 

As per Sec 44AD- The relevant assesse has to declare minimum profit i.e., 8% of the Total Turnover and also he can declare higher profit i.e., more than 8% of Total Turnover as his profit.

So as Mr.Pradeep said, as the minimum rate is 8%, can we show higher rate, say 12.5% considering our actual profit?

Amount of Presumptive Income shall be 8% of the Total Turnover or such higher sum as declared by the Assessee.

In case of Civil Construction or Contract Business

Turnover = Gross Receipts - materials supplied by contractee

(Note: Sec 44AD is applicable only if turnover is less than or equal to 60 Lakhs)

As per sec 44AD any assesse has declared minimum  profit 8% if less than 60 lac gross receipt during the years.  assesse show excess profit as you like. not less than 8 %

if profit is shown below 8% then assesee will be subject to tax audit us 44AB

The assessee has to declare a higher income if such income is more than 8% of the gross recipts as the obligation to declare the correct income is not excused by these provision

If i am correct, Sec.44AD has effect form AY11-12, Not in AY10-11