Siddarth (Student) (60 Points)
30 December 2013If an assessee declares his income less than 8% of his gross receipts, and such income is less than the exemption limit is he liabe to get his accounts audited?
Eg. Gross Receipts = Rs 45,00,000 and he declares his income at 4% = Rs. 1,80,000 is he liable to get his accounts audited?
Swami Ayyappa Nuli
(TAX ADVISOR & CONSULTANT AT G.S.T SUVIDHA CENTER)
(1372 Points)
Replied 31 December 2013
hi.When assessee opt for section 44AD and if he declares his income less than 8% of gross receipts and if his income exceed maximum amount chargable to tax,he is liable for tax audit under sec 44AB.Here Maximum amount not chargable to tax is not basic exemption limit.it is after all deductions an assessee has under Chapter VIa.So clearly,if he opt for 44AD and offer less than 8% of his gross receipts as his income and if he liable to pay any amount of tax even a rupee,he is liable to tax audit under sec44AB.If found any mistakes in my above assetions,pls notify me!!!!
CA Jainam Shah
(Chartered Accountant)
(190 Points)
Replied 31 December 2013
Siddarth
(Student)
(60 Points)
Replied 31 December 2013
CA Manish Chainani
(Business)
(111 Points)
Replied 31 December 2013
Prabhakar
(practicing chartered accountant)
(91 Points)
Replied 31 December 2013
Prabhakar
(practicing chartered accountant)
(91 Points)
Replied 31 December 2013
Aniket Tater
(Accounts Manager)
(230 Points)
Replied 22 February 2014
one of my client's firm is having gross turnover of Rs.5200000 and they declared income less than 8%. further the income also does not exceeds the taxable limit. Whether Audit u/s 44AD is required or not?
What if the last date for audit is passed n assessee filed his I.T. returns with income less than 8% !
Aniket Tater
(Accounts Manager)
(230 Points)
Replied 22 February 2014
CAclubindia
