Sec44ad

Tax Audit to be done.

IF YOU DONT WANT TO HAVE AUDIT THEN DECLARE 8% PROFIT AND SUBMIT RETURN U/S 44AD.

Srikumar,

Your client will have to get his books of account audited U/s 44AD if his turnover is less than the limit specified in Section 44AB i.e. Rs.1 Crore and He wants to declare profit less than 8% of his turnover.

If he doesn's want,Then just declare 8% profit in IT Return and file it.

S.R.Associates 

Tax & Investment Consultants

Cell:9668595760 

e-mail:srassociates0713 @ gmail.com

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As per section 44AD of the Income Tax Act, 1961

Every eligible assessee undertaking eligible business can declare minimum 8% of total turnover or gross receipts as profit from such business and this deemed income provision is only applicable to business whose turnover is less than Rs. 60 Lakhs and profit and gain from such business has to be minimum of 8% of such Turnover/Gross Receipt which means assessee can declare higher income. In case assessee wants to declare lower amount than he is has to undergo tax audit.

Eligible assessee

Individual / Firm with resident status only (Not applicable for LLP’s)

Business

Any business (excluding the business of transport) having maximum gross turnover / gross receipt Rs. 100 Lakhs

Minimum deemed profit / gain:

Minimum 8% of such gross turnover or gross receipts (Profit lower than 8% can be claimed, but in that case Audit u/s 44 AB is compulsory)

Tax Audit Limits

For Business Turnover/Sales to Exceed:

Regards,