Sec 44ad

Forget about asset because asset doesn't generate any proft and loss........

In this topic you have to make your decision:---

If you honestly follow U/s 44AD then you can't declare @ 8% becuase your actual profit @ 25%....

Section 44AD said you shall be declare 8% or actual profit whichever is higher....

So you shall be declare profit @ 25%.....

But if still if you want to declare 8% then you can because once you declare 8% that means you doesn't maintain book of accounts..

If you get any query then you have a point to say that you don't have book of accounts that's why you declared 8%..

If u/s 44AD we declare a profit of 3 lakhs/year and a total of 12 lakhs in 4 years. However, our Bank balances & investments (which can be verified even without maintaining books of accounts) increase by Rs. 20 lakhs and we purchase a flat at the end of 4 years. Can we be questioned about the source of increase of the assets, since we only declared Rs. 12 lakhs in 4 years but actual increase in 4 years was 20 lakhs.  

Hi, I think your understanding is wrong. Can you provide a reference for analysis? Thank you.

Originally posted by : novice
	"If you honestly follow U/s 44AD then you can't declare @ 8% becuase your actual profit @ 25%.... Section 44AD said you shall be declare 8% or actual profit whichever is higher... "   Hi, I think your understanding is wrong. Can you provide a reference for analysis? Thank you.

Suggest you to kindly read section 44AD you will get your answer....