Under section 44 AD......

Person declaring income u/s 44AD not required to maintain books of accounts and hence, asking financial statements for the same is beyond the operation of section 44AD. Draft suitable reply in consultation with CA to avoid any litigation point.

Regards,

Manoj

I think there is still some ambiguity here.

Can we file under Section 44, if we meet the criteria and if as such the profit is higher than 8%.

Do we still need to keep accounts to show the same?

Just draft a reply to intimate the AO that you have declared PGBP income u/s 44 AD & you are not liable to maintain the books of accounts prescribed u/s 44 AA provided that you have complied with all the conditions lied down under section 44 AD.

In case of any further queries, kindly mail me at casoravgupta @ gmail.com

Thanks & Regards
CA. Sorav Gupta
(Practicing Chartered Accountant)

Thanks so much Sorav.

I think the confusion is usually that if one decides to operate an entity under Section 44, then do I need to maintain any accounts?

If my profit is above 8%, can I deem it to be 8% as per the law

If its a partnership, does the taxation happen at the partnership level and profit post tax remains tax free in the income statement of the respective partners (even if the partners are firms)

Can AOs still harass despite some court orders stating about section 44