Gettiing confused with section 44 ad & 44 ab ............

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Fowllowing  lines r from  V.K. Singhania's book

frist read this line

It is poosible to declare lower income than deemed income & the fowllowing cosequences  are applicable

1.Tax payer will have to maintain books of account as per sec 44AA

2.The taxpayer will have to get his books of account audited  u/s 44AB(irrespctive of turnover )if his TOTAL income exceeds exemption limit .

i have doubt that for section 44ab turnover is nt a matter to look for it is the TOTAL INCOME. which we hv see n which means income after deduction under chapter VI-A

Pls tell me m mi right?

Replies (7)

I could not get your point exactly.

But thats right if total income is less than exemption limit then there is no need to file the ITR and so no need to get the accounts audited. But you should not get confused with turnover and total income. it is only the turnover which is considered for tax audit and not the TOTAL Income.

And total income does not mean after deduction under Chapter VI-A. It is taken before any deduction of chapter VI-A.

but the language is quite clear in singhania book that it is irrespective of turnover tax audit hogi agar total income taxable limit se upar ho  to audit karani hogi PLS MIND THE WORD IRRESPECTIVE OF TURNOVER.

THATS IS MY QUERY 

Sec 44Ad provides that businesses with less than 60 laksh TO will have to show a presumptive profit of 8% on turnover. If they do not show - note this point - it is in this context the text book says irrespective of turnover

Hope that's cleared ur confusion

yes by that they only mean that even if the turnover is less than 60 laks tax audit will be applicable.

And one more thing if there is no income from PGBP there will not be any tax audit whatever the income from any sources be.

 According to my view singhania book is really very tuff to understand. All direct bare act are there in that that's why it's very tuff to understand.

 

T.N.Manoharan is very nice book you can refer this book for that particular doubt dear..

all the best.

Dear,

         Agar aap ne income 8% se lower show ki aur aapki income exceed karti hai basic exemption limit se before availing deductions under sec 10A,10B and under heading C of chapter VI-A(from 80HH-80RRB)it means you can avail the deduction under section 80C etc

if the above condition prevails then 44AB is applicable and if turnover exceeeds 60 lakhs then also 44AB is applicable.

regards

According to Sec-44AD, if the turnover is less than 60lakhs, then a sum equal to 8% of turnover shall be deemed to be the profits frm the business........

The presumptive basis will not be applicable, if the turnover exceeds 60 lakhs...........

 

The assessee can also choose not to opt for presumptive scheme, in this case, the assessee have to maintain all the books of accounts and get his accounts to be audited from CA.......

 

I hope your confusion had been cleared.....


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