16 June 2011
Section 44AD allows assessee having income from civil construction business to declare income at presumptive rate of 8% on gross turnover, provided gross turnover is below Rs 40.00 lacs. Once turnover exceeds Rs 40.00 lacs benefits of this section can not be taken. If any assessee eligible to choose option under this section he can show income higher than 8.00% of gross turnover and he is not required to maintain any books of account. Only he has to prove his gross turnover. Further if any assessee declare income less than 8.00% of gross turnover he is required to maintain all books of accounts prescribed in section 44 AA and get his account audited under section 44AB of the Income Tax Act 1961.
further check out https://www.caclubindia.com/articles/new-section-44ad-text-and-discussion-9713.asp
Section 44AD is now, from AY 2011-12 , applicable to "eligible business" of an "eligible assessee". Details have been presented by the author in a tabular form. A nice comparative study of Section 44AD and 44AE. * After going through the above you may feel free to raise your queries. .
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