28 March 2012
if the income is below exemption limit then whether audit is required to be done? For e.g turnover is 40 lacs Income is 150,000 8% of turnover is 320,000 Please refer section 44AD(5) before answering in which it is written that and income exceeds maximum amount not chargeable to tax
28 March 2012
Section 44AD(5) read with Section 44AB(d) makes it clear that an assessee falling within the perview of Section 44AD shall be required to get his accounts audited only when BOTH the following conditions are satisfied:
1. He declares a profit less than 8% AND 2. His income EXCEEDS the exemption limit
Accordingly, in the above case the assessee is NOT required to maintain books of accounts and is NOT required to get his accounts audited.
29 March 2012
Dear Siddarth, In Sec44AB(d) it is and income exceeds maximum amt. which is not chargeable to income tax in any previous year is given. Here what does it mean by any previous year please explain ? for example if in F.Y. 2010-11 he has paid income tax of rs 1,000/- and in FY 2011-12 his income is 150,000 with turnover of 40,00,000 then whether he is liable to TAX Audit
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