Query regarding maintenance of books of a/cs u/s 44aa and au

Mr. Ram is Sole proprietor in following 3 businesses –

 

Particulars

Turnover during 2010-11

Business – I  - Industrial Parts

26 lakhs

Business – II – Retail trade of cloth

21 lakhs

Business – III – Plying of 3 lorries

14 lakhs

 

 

 

 

 

 

1)      He wants to know he has apply presumptive taxation  u/s 44AD and 44AE ? If answer is yes, then he has to get maintenance of books of accounts u/s 44AA and his books of account audited u/s 44AB ?

2)      If in case of Business – II – Retail trade of cloth, turnover during the year 2010-11 is Rs. 20 lakhs, in that case he has apply presumptive taxation u/s 44AD and 44AE? If answer is yes, then he has to get maintenance of books of accounts u/s 44AA and his books of account audited u/s 44AB ?

 

Replies (2)

to ans ur 1st option - he cant opt for 44ad as the t/o is more than 60 lakhs. And similarly he needs to maintain the books and get the accounts audited.

 

And the under the second option, he can go for 44AD as the t/o would be 60 Lakhs and will not exceed 60 Lakhs.

 

the answer to your first question is 44AD.no books are to be maintained.only gross receipts book must be made available.no audit of accounts is required.until the turnover does not exceed 6000000 u can avail presumptive taxation.

the answer to second question is same as first question

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