Query about 44ad and filing of return.

Tax queries 2334 views 5 replies

Ankur

252 Points Joined March 2011

hello friends,

plz help me on a doubt.

it is stated in 44AD that if an assessee wants to declare his profits less than 8% of his turnover then he will have to maintain accounts as per 44AA and get his accounts audited.

and as per section 139(1) every person who has to get his account audited as per income tax law or any other law for the time being in force has to file his return till 30 september????

so my question is that is this aforesaid provision of 139(1) is only applicable in the case of 44AB or the above person who declares his profits less than 8% of his turnover as stated above can also file a return on or before 30 september????

Replies (5)

CA Deepen Devi

Practicing CA

83 Points Joined December 2010

HI.

In my opinion the person who declares his profits less than 8% of his turnover as stated & get his books of a/c audited due date u/s. 139(1) wll b 30 Sept.

CA Deepen Devi

CA.Sampath Rao

In Practice

78 Points Joined June 2011

Every person who subjected to audit u/s 44AB ia required to file his return on or before 30th sep

if the assessee covered by sec 44AD and declares his income below 8 percent required to maintain books and get those books audited cosequently he has to file return before 30th september

conclusion : every assesse shall file return on or before 3th sep if he covered by sec 44AB

pooranimaa venkataraman

30 Points Joined November 2009

1. Consequences of declaring lower profit –

a. Required to get books of accounts audited u/s. 44AB.

b. Compulsory maintenance of Books of Accounts u/s. 44AA

Notes :-

1. In case assessee declaring profit lower than 8% of Tunrover/Gross Receipts due date for filing of Return will be 30^th Sept, since Books of Accounts are required to be audited u/s. 44AB.

2. If an assessee is not required to file his Income Tax Return u/s. 139(1), he is not required to audit his Books of Accounts u/s. 44AB even if he has declared profit below 8% of Gross Turnover u/s. 44AB. An Individual/ HUF is not mandatorily required to file his/its Income Tax Return if his/it’s income (without claiming deduction u/s. 10A, 10B, 10BA, 80C TO 80U) does not exceed the amount of basic slab. (which is Rs.160000/- for A. Y. 2011-12). Thus Individual/HUF having no other income & turnover below Rs.20 lacs (160000/8 *100) will not be covered u/s.44AD.

3. Individual/HUF declaring profit @ 8% of Sales/Turnover/ Gross Receipt or more can file their Income Tax Return is New ITR -4S (sugam). Purpose seems to be that SUGAM Returns will not be taken up for scrutiny assessment.

4. Penalty for Non-maintenance of Books of Accounts u/s. 271A is Rs.25000/-.

5. Penalty for failure to audit Books of Accounts u/s. 44AB or Failure file Audit Report is 0.5% of Sales/Gross Turnover/ Receipt (Maximum is Rs.1,50,000/- but practically 0.5% of Rs.60/- lacs is Rs.30000/-).

6. While calculating Gross turnover/ Gross Receipts limit u/s. 44AB, Gross Turnover/ Receipts of business covered u/s. 44AD & 44AE shall be excluded.