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Income tax u/s 44ad

Sumit Agarwal (Article Assistant (CA-Final)) (393 Points)

14 February 2013

Hi friends If one used to file income tax return u/s 44ad,then if department gives notice for scrutiny assessment then how to tackle it,as the client dont maintain any books?

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Janak (Chartered Accountant ) (98 Points)
Replied 15 February 2013

Under Section 44AD of the Income Tax Act, Assessee opting for such scheme shall be exempted from maintanance from books of accounts required under section 44AA.

But for computing business profit on presumptive basis and whether assessee is covered under section 44AD, Maintainance of records of turnover is required.

In case of scruitiny, documents to be submitted will be demanded by AO considering the requirement of Sec. 44AD.