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Taxation of Income

GOPAL AGGARWAL (DOING NOTHING) (1339 Points)

31 May 2011

My net profit Is less than 8 percent as reuired by section 44AD. Wjether I need to gets the account audit or not. Even my income is less than the income which is not chargeable to tax. or chargeableto tax

And Total Income whether will be Net Income or Gross Total Income.

I am totally confused. Please suggest me

With Regards

Gopal Aggarwal

gopalaggarwal1 @ yahoo.com

9034550081

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2 Replies

Himanshu (Finance Controller) (65 Points)
Replied 31 May 2011

If you are engaged in any business as covered under section 44AD of the Income Tax, than it is required to get your accounts audited if you are showing Total Income from business is less than 8%. If your are showing income at more than 8% than there is no need to get your accounts audited. For business income the personal limit is not to be considered. In other words if income @ 8% is less than your individual limit than the tax libility shall be nil but you will have to get yout accounts audited.

Jay Hind

Himanshu Mehta

CA ADITYA SHARMA (CA IN PRACTICE ) (16719 Points)
Replied 31 May 2011

Originally posted by : Himanshu
	If you are engaged in any business as covered under section 44AD of the Income Tax, than it is required to get your accounts audited if you are showing Total Income from business is less than 8%. If your are showing income at more than 8% than there is no need to get your accounts audited. For business income the personal limit is not to be considered. In other words if income @ 8% is less than your individual limit than the tax libility shall be nil but you will have to get yout accounts audited. Jay Hind Himanshu Mehta