25 November 2011
my client has made no sale during the previous year but there are some expenses relating to his business. As such there is a loss of Rs. 72000/- where no sale or sale is NIL,Its come under preview of if net profit less than 8% of turnover audit is required.Inthis case Audit is required ?
25 November 2011
AUDIT IS REQUIRED UNDER SECTION 44 AD ONLY WHEN THE GROSS TURNOVER OF THE BUSINESS EXCEEDS 60 LAKHS.
From Assessment year 2011-12, a new section 44Ad has been inserted in the Income-tax Act to replace existing sec.44AD & 44AF. The new Section will be aplicable to any business ( whether it is Retail trade,or Civil construction or any other business). The provisions of the new Section will be applicable if the following conditions are satisfied: 1.Assessee eligible for the purpose of this Section has to be an Individual/a HUF/a Partnership Firm( not being a LLP); 2.The assessee has not claimed any deduction u/s.10A,10AA,10B,10BA,80HHto 80RRB in the relevant Assessment Year; 3.The ASSESSEE is not engaged in the business of plying,hiring,or leasing goods carriages referred to u/s. 44AE; and 4. Total Turnover/ Gross Receipt of the Assessee in the previous year should not exceed Rs. 60.00 lakhs.
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