Query on Section 44AD

Originally posted by : bikash dutta
	Hello seniors, I have the following confusions regarding the Section 44AD— 1.      1.  If a person has two houses in two different places, can he club the house rent received and show it in ITR 4 S as ITR 4 S shows in column B3 “Income from one house property” ?   2.     2.   An individual below 65 years has a sales of 34,00,000/- in F.Y. 10-11 on which net profit @ 8% comes to2, 72,000/- as per Sec. 44AD. But his actual profit after deducting expense is1, 58,000/-. Here, as per section 44AD he is liable to get his accounts audited. In this case without going to ITR 4S can he file his return in ITR4 by declaring his income as1, 58,000/- and without getting his accounts audited. Plz help me.

if u want to show profit less then 272000 i.e. 8% then audit is compulsory................

@ U. S. Sharma

If the assesee wants to declare 1.58 lacs , then which form he should select? Is it ITR 4? Plz help..

Originally posted by : bikash dutta
	@ U. S. Sharma If the assesee wants to declare 1.58 lacs , then which form he should select? Is it ITR 4? Plz help..

yes, ITR 4 

in case of 1.58( which is below 8%), u need to maintain books and audit preferred, as the case may be selected for regular assessment in case of non audit.

The Section 44AD is very clear. If the Income offerred is less than 8%, it is compulsory to get the Accounts audited u/s 44AB and furnishing of Audit report to ITO, Even Sec. 44AB also specifies with reference to sec. 44AD. As such, these cases fall u/s 44AB purview. There is no escape. Thus, form ITR 4S can not be used,

with regards

chenchumohan. a.

An assessee with turnover below Rs. 60 lakhs, who shows an income below the presumptive rate prescribed under these provisions, in case his total income exceeds the taxable limit, required to maintain books of accounts and also get them audited.

in this case the total income does not exceed the threshold limit 1.6 lacs, so 44AD benefit is available without audit, however audit is secured procedure

As per Section 44AD, in case the assessee wants to declare the income less than 8%, following consequences of the same will aarise:

1 maintainence of books of accounts as per section 44AA if his total income exceeds exemption limit

2 get the accounts auditted if his total income exceeds exemption limit

it is clear that the assessee is only required to get the accounts audited when T.I. exceeds exemption limit.