Please explain Section 44 AD ..is it mandatory?My doubt is if my turnover is below 60 lacs and i declare a profit more than 8% without opting 44AD ie,with a balance sheet and a P/L.Whether my business is liable to audit u/s 44AB?
Shafaf (Chartered Accountant) (193 Points)
14 June 2011Please explain Section 44 AD ..is it mandatory?My doubt is if my turnover is below 60 lacs and i declare a profit more than 8% without opting 44AD ie,with a balance sheet and a P/L.Whether my business is liable to audit u/s 44AB?
ABHISEK TOSNIWAL
(CA in Practice)
(638 Points)
Replied 14 June 2011
When you opt for 44AD i.e. in case your turnover is below 60 lacs and you show a profit more than 8%, then you don't need to have your accounts audited. But in case you show your profit less than 8% of your turnover then you need to have your accounts audited.
Regards
Abhisek Tosniwal
CA ADITYA SHARMA
(CA IN PRACTICE )
(16719 Points)
Replied 14 June 2011
in this case you r not eligible for audit
CA ADITYA SHARMA
(CA IN PRACTICE )
(16719 Points)
Replied 14 June 2011
nett profit more than 8% and sale is less than 60 lakh than 44ab not applicable
Vaishali Bopardikar
(CA final passed)
(109 Points)
Replied 14 June 2011
If in dis case assesse is maintaining books and preparing B/S n P/L regularly , can AO makes him mandatory to audit the books and show the true profit and not 8%???
CA Devender Chauhan
(Group Financial Accountant)
(1526 Points)
Replied 14 June 2011
| Originally posted by : Dhanya | ||
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An assessee with turnover below Rs. 60 lakhs, who shows an income below the presumptive rate prescribed under the provisions of Sec 44AD, in case his total income exceeds the taxable limit, required to maintain books of accounts and also get them audited by a CA. So in your case if you wish to show a profit below 8% of turnover you have to maintain accounts as per 44AA and get them audited under 44AB. So I feel that,for small business firms, its better to opt persumptive taxation than maintaining a long list of books of accounts and spending a good sum as Audit Fee.Moreover an assessee opting for 44AD is exempt from paying advance tax. So go for 44AD............. |
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srry Dhanya .... but as per safaf he is declaring profit more than 8% not less than
CA Devender Chauhan
(Group Financial Accountant)
(1526 Points)
Replied 14 June 2011
| Originally posted by : future ca | ||
|
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nett profit more than 8% and sale is less than 60 lakh than 44ab not applicable |
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Dhanya
(nil)
(62 Points)
Replied 14 June 2011
@ D.S.Chauhan............I just mentioned my opinion abt why one should go for 44AD rather than declaring profit more than 8% of turnover.I didn't dealt with Safaf's question in particular because it was already answered by Abhishek and others. Sorry if my answer was an inappropriate one n this context.
Upender Anand
(C.A final)
(58 Points)
Replied 14 June 2011
please provide me nots on account of trading concern, tell me in which case caro2003 apply
thanks
Upender Anand
(C.A final)
(58 Points)
Replied 14 June 2011
Section 44Ab not attract if turnover less then 60 lakhs and profit more then 8%
Amit Jain
(Proprietor)
(290 Points)
Replied 14 June 2011
Section 44 AD comes as a relief for small businessman as per me. Simply opt for 8 % or more profit under the section and no hassales for maintaining books....It is indeed an advantage to go 44AD instead for having audit..
L. MuthuKumaran
(Income Tax Consultant)
(53 Points)
Replied 14 June 2011
CA,CMA,CS Karan Gogia
(Employed)
(230 Points)
Replied 16 June 2011
...section 44AD is not mandatory.....it is optinal...u can have turnover less than 60 lac and can declare profit more than 8%..but now u r no longer covered under 44AD.....and normal provision of book keeping(44AA) and tax audit(44 AB)...applies to u....
and now as per normal provision ur turnover is to b seen ,which is less thn 60 lac...so u r not liable to tax audit
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