Sec 44ad

no not at all

i m sorry..my mistake..If an assesse has turnover more than 60 lacs for present year and 1 crore for 2012-2013 than hes mandatorily require to get his accounts audited..n if turnover is below the above mentioned limit and profit is also below 8% then too hes required to get his accounts audited...

Dear Nirmit,

An assessee is required to get his accounts audited if he wants to declare his income below 8% of the gross turnover.

I don't agree with vicky and Deepali.

now m i justified mr. pawan..actually i got confused i thought its above 8%

hi Nirmit.........

8% taxation rate on presumptive basis is available U/S 44AD. .

but benefit of section 44AD is not available for companies as it is available only for INDIVIDUAL, HUF & ,FIRMS.

section 44AD is not a mandatory presumptive taxation section........ but section 44AD is triggered when gross receipt of business does not exceed 60 lacs.

in that case ,if net profit is below than 8% income as ascertained US 44AD and assessee wants to go with net profit ,section 44AB(Tax audit) becomes compulsory.

THANKS,

SUVAJIT

You have 2 options. Provided your turnover is below 44AB limits:

1. Declare Actual profit (i.e.below 8%) - You have to maintain account, get it audited.

2. Declare 8% or more profit on gross turnover for Income Tax - No need to maintain Books of accounts, no question of Audit.

AGREE WITH PAWAN

Thanks every one for you views and answer..
Now what if I have profit of below 8% but i dont get my books of account audited and just file my return what can be the consequnces faced...????

What if turnover 1.5 crore and profit declared 15%?

If you want to show profit is less than then audit is compulosry

Turonver exceed so audit is compulsory

Originally posted by : Kamlesh
	What if turnover 1.5 crore and profit declared 15%?

If gross receipt exceeds 60 lacs ( FA 2012 - 1 crore) then presumptive taxation is not available. hence tax audit is compulsory ..furthermore, tax liability will be calculated on the basis of net profit of audited books of accounts. percentage of profit is irrelevant.

benefit of presumptive taxation is available on gross receipt basis only.

THANKS,
SUVAJIT