Presumptive taxation u/s 44ad

This query is : Resolved

CA.SHAHZAD SAYYED (Querist)
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15 August 2011 Dear Senior Colleagues

kindly clarify following point

1) if a person having Turnover from Trading Business Rs.31 Lac and also maintain all Books as prescribed u/s 44AA need not show profit at 8% because he is not opting Presumptive taxation for computation of income.

Some of Income Tax Practitioner are of the opinion that-

all Business cover under this section and even if assessee maintaining books of A/c he has to show profit at least 8% , if he is showing profit less than 8% then he has to keep Books of A/c and also need to get his books of A/c audited

My Views are

1) Presumtive Taxation viz 44AD, 44AE are special Provosion which are optional and not the mandatory.

2) if any taxpayer keeping books of A/cs and and wants normal provision of taxation then he is free to show any percentage of profit might be lower than 8% or more

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
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15 August 2011 Yes you are right but once you adopt 44AD the criteria is that the turnover should not exceeds as prescribed u/s 44AB and the minimum profit should not be less than 8% of the gross turnover. If it is less than 8% then you have to get your books audited u/s 44AB