This is a query regarding sec. 44AD of income tax act, 1961
1.) A person having gross turnover of Rs. 35 lacs maintains the books of accounts and show the net profit of Rs.2.70 lacs( Being less than 8% of Turnover). The books of accounts are not audited by a chartered accountant. Is sec.44AD considered to be defeated by above mentioned treatment.? If yes than what is the relevence of 44AB regarding the compulsory audit of accounts.? I mean that if a person having gross turnover less than 60 lacs needs to be audited his books of accounts than what is the relevence of the 60lacs limit.?
2.) Is this means that every person having gross turnover of less than 60Lacs compulsory need to show profit more than or equal to 8% of turnover.???
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