1. u/s 44AD , if estimated net profit for the year is more than Rs.1,20,000 and net profit % is more than 8%.. other conditions satisfied, then maintenance of books of accounts required or no. ?? Please explain a bit in detail. Thanks.
Raj C Doshi
Under PTS Business income is 8% of GROSS RECEIPTS (i.e Sales).
Under PTS the assessee need not maintain any book of account.. However if the assessee claims that his income is lower under normal provision then in presumptive taxation scheme then must maintain book of account..
However the assessee does not fulfill condition under 44AD as the net profit exceeds 120000 ( I read the text of the section which says if net profit exceeds 120000 then books of accounts to be maintatined ) . Please throw some light whether my interpretation of the section iscorrect
I think you are talking about section 44AA which says. . If the assessee is engaged in business or non specified profession and there income from such business profession exceeds Rs.1,20,000 in any of the 3 years immediately preceding the previous year then he shall maintain such book of account and other documents as may enable the assessing officer to compute the taxable income..
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