14 August 2013
Sir, if the assessee who maintaints the books of accounts has the profit more than 8% on the turnover of Rs.55 lacs, can he opt to officer the income @8% under sec 44AD
44AD. (1) Notwithstanding anything to the contrary contained in sections 28 to 43C, in the case of an eligible assessee engaged in an eligible business, a sum equal to eight per cent of the total turnover or gross receipts of the assessee in the previous year on account of such business or, as the case may be, a sum higher than the aforesaid sum claimed to have been earned by the eligible assessee, shall be deemed to be the profits and gains of such business chargeable to tax under the head "Profits and gains of business or profession".
Hence in the present case, since the assessee has income more than 8% as per the books of a/c, he is supposed to declare the actual profit. The assessee cannot evade remaining income since the actual profit needs to be shown. Here the intention of the law is to show minimum profit of 8% or the actual profit which ever is higher.
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