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??
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)
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.
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