IF an individual has a turnover of 45 lakhs from manufacturing businessin the F.Yr 2010-2011,is it compulsory for him to show profit @ 8%
or if he doesn't shows it at 8% will he hav to get his accounts audited?
deepa (CA) (79 Points)
10 July 2011IF an individual has a turnover of 45 lakhs from manufacturing businessin the F.Yr 2010-2011,is it compulsory for him to show profit @ 8%
or if he doesn't shows it at 8% will he hav to get his accounts audited?
rz's
(TRAINEEE)
(243 Points)
Replied 10 July 2011
yes he will hav to get his accounts audited incase he has profit less than 8%
M. N. JHA
(CA)
(8316 Points)
Replied 10 July 2011
yes, if u want to shaow profit less then 8 % then audit is compulsory..........................
deepa
(CA)
(79 Points)
Replied 10 July 2011
but the provisions of section 44AD does not makes it compulsory
Ravikant
(Accountax)
(6285 Points)
Replied 10 July 2011
CA ADITYA SHARMA
(CA IN PRACTICE )
(16719 Points)
Replied 10 July 2011
if profit is less than 8% than audit is compulsory
rz's
(TRAINEEE)
(243 Points)
Replied 10 July 2011
but 44AD makes it compulsory to take profit at 8%...
44AD is for persumtive profit were books of account are not maintained...
the moment u take profit less than 8% its better to get ur accounts audited...
Priya Mehta
(CA & CS FINAL Article Assiatant)
(219 Points)
Replied 10 July 2011
| Originally posted by : Ravikant | ||
 |
If the individual does not opt for Section 44AD , he is not liable to Tax audit if receipts are below 60 lakh, and It is NOT compulsory for him to show profit @ 8% |
 |
rz's
(TRAINEEE)
(243 Points)
Replied 10 July 2011
(1) Notwithstanding anything to the contrary contained in sections 28 to 43C, in the case of an eligible assessee engaged in an eligible business, a sum equal to eight per cent, of the total turnover or gross receipts of the assessee in the previous year on account of such business or, as the case may be, a sum higher than the aforesaid sum claimed to have been earned by the eligible assessee, shall be deemed to be the profits and gains of such business chargeable to tax under the head "Profits and gains of business or profession".
(2) Any deduction allowable under the provisions of sections 30 to 38 shall, for the purposes of sub-section (1), be deemed to have been already given full effect to and no further deduction under those sections shall be allowed :
Provided that where the eligible assessee is a firm, the salary and interest paid to its partners shall be deducted from the income computed under sub-section (1) subject to the conditions and limits specified in clause (b) of section 40.
(3) The written down value of any asset of an eligible business shall be deemed to have been calculated as if the eligible assessee had claimed and had been actually allowed the deduction in respect of the depreciation for each of the relevant assessment years.
(4) The provisions of Chapter XVII-C shall not apply to an eligible assessee in so far as they relate to the eligible business.
(5) Notwithstanding anything contained in the foregoing provisions of this section, an eligible assessee who claims that his profits and gains from the eligible business are lower than the profits and gains specified in sub-section (1) and whose total income exceeds the maximum amount which is not chargeable to income-tax, shall be required to keep and maintain such books of account and other documents as required under sub-section (2) of section 44AA and get them audited and furnish a report of such audit as required under section 44AB.
Tarun
(A)
(76 Points)
Replied 10 July 2011
Well people the Finance Act, 2010 got a small amendment increasing the limit to 60 lakhs w e f AY 2011-12 (i.e. applicable for FY/PY 2010-11)
Best Wishes!
Regards,
Pradeep Patankar
(IFRS ( London))
(289 Points)
Replied 10 July 2011
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