Query about 44ad and filing of return.

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

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

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.

View Provisions of New Section 44AD in Chart Format from the following link

https://tax-india.blogspot.com/2011/06/new-section-44ad-presumptive-income.html

thank u  very much all for your valuable suggestions