08 July 2013
I need an opinion on requirement of tax audit U/s. 44AB in the below mentioned situation,
1.Assesses turn over during the FY 2012-13 is Rs.98,00,000
2.Actually the business is under loss of Rs.1,00,000
Under this situation whether tax audit is required if the assessee claims Business loss or Profit of Rs.1,85,000 which is less than the 8% of Total turnover as per Section 44AD ( Presumptive Taxation) and below the basic exemption.
The earliest opinion from your end shall highly be appreciated.
09 July 2013
But as per Section 44AD (5) states that “Notwithstanding anything contained in the foregoing provisions of this section, an eligible assessee who claims that his profits and gains from the eligible business are lower than the profits and gains specified in sub-section (1) and whose total income exceeds the maximum amount which is not chargeable to income tax, shall be required to keep and maintain such books of account and other documents as required under sub-section(2) of section 44AA and get them audited and furnish a report of such audit as required under Section 44AB”
So if the assessee claims profit below basic exemption limit which is less than 8% of total turnover or claims loss, the Section 44AB is applicable or not?