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Help required regarding audit under section 44ad

Tax queries 418 views 4 replies

CA Devesh Thakur

303 Points Joined January 2009

I have some doubt regarding audit under section 44AD if assessee is showing his income lower than 8%. My client is having loss under his professional business which states that he is showing income lower than 8%. Besides that income he is having income from other source which is more than the income not chargeable to Income Tax.

Kindly guide me whether he is required to get his accounts audited or not??

Replies (4)

subhash kumar jha

PROFESSION

445 Points Joined August 2012

According to section 44AD if normal income of assessee is less than 8% of turnover then he will definitely opt for normal provision rather than going to PTS and in this case assesee need to get his account audited ( Turnover is more that crore)

Tribhuvan Aditya Singh

Student as well as Self-employed

3710 Points Joined September 2007

professional income is not considered under 44AD. only business incomes are considered.

Tribhuvan Aditya Singh

Student as well as Self-employed

3710 Points Joined September 2007

so i dont think audit under 44ad will be applicable here.

Guest

I agree with Tribhuvan Aditya Singh,

But still your client in business and his income is less than 8% then he required to maintained proper books of account under rule 6F and also get his books of accounts audited.

on the other way Don't opt Section 44AD. file normal return.