14 October 2011
Hello sir, i m discussing the situation as under that i have already discuss with lots of tax expert but no one is giving me the similar / right view.
The situation is: - I m having a sale of 30lakh from Export sale of fabric & against this sale i am having a net profit as per books is 150000/-. I am also having some other income like as rental income, int. income, draw back etc. Sir, my main point is here that i want to consult to you, is it possible to file the ITR without audit (as per section 44-AB) and i also don`t want to go with section 44-AD of income-tax act`1962. Sir, some of the tax expert and also CA is saying to me that we can`t file our business profit below then 8% as my net profit is coming as per books is near 5.20% (approx).
Now, my main question to you sir is it possible to file the return in ITR 4 without audit in the above situation or not? and i also don`t want to go with section 44-AD.
14 October 2011
If your(presuming the status is individual) total income exceeds the 'maximum amount which is not chargeable to tax', audit is compulsory. Pl go through section 44AD(5) of the Income tax Act,1961.
14 October 2011
Sir, It is a little conflict between this two situation. But from the A.Y. 2011-12 Section 44 AD amended and it include ALL BUSINESS. There is no problem for TAX as you are offering INCOME....... But It is advisable that file return by 44 AD because u will enjoy no scrutiny and NO INTEREST FOR ADVANCE TAX, No maintance of books. Section 44 Ad introduced for covering small tax payers. Yes You can file ITR 4 it is not necesssary that file ITR 4s.
If U opt 44 AD and u have rent income from two haouse or capital gain then compulsary file itr 4.
CAclubindia
