Sec 44ad: profits lower than 8%
Abhinav (student) (564 Points)
16 August 2013Abhinav (student) (564 Points)
16 August 2013
CA and CMA Ravinder Singh
(CA and CMA)
(853 Points)
Replied 16 August 2013
yes, it is inclusive of the income declared.
and the person is required to get his books of account audited as per the provisions of section 44ad and 44ab.
CA LOVELY ARORA
(C.A. B.Com (H) Graduate)
(2151 Points)
Replied 16 August 2013
Dear Abhinav,
yes, the said amount of profit from business (Rs. 125000) is included in the total income for the purpose of determining tax audit liability, but in your case, the said amount combined with income from other sources would come out to Rs. 175000..... and this is not exceeding the basic exemption limit. However, if you took that figures, just for example purpose, ignoring the basic exemption limit amount, then it's OK.
Best Regards,
CA Lovely Arora
ca.lovelyarora @ gmail.com
CA Nitin K. Varshney
(FCA DISA CCA Peer Reviewer (ICAI))
(606 Points)
Replied 16 August 2013
hey abhinav books are required to be audited in this case, coz you are showing profit less than 8% and it will not be covered u.s 44AD. you have to declare profit atleast 8% excluding income from other sources
CHANDAN KUMAR SINGH
(Articles)
(22 Points)
Replied 16 August 2013
Abhinav
(student)
(564 Points)
Replied 17 August 2013
Dear all
Please reply specific to my example. The total income is less than the basic exemption limit. so I think audit should not be applicable.
CA LOVELY ARORA
(C.A. B.Com (H) Graduate)
(2151 Points)
Replied 17 August 2013
Dear Abhinav,
that's what i replied before... that according to your specific example.. you are not liable for tax audit...
CA Siddharth Mehra
(Chartered Accountant)
(145 Points)
Replied 17 August 2013
Triptraj Singh Dhanzal
(T.S. Dhanzal "Advocate")
(22 Points)
Replied 17 August 2013