Then........ i) Is Mr A is not required to get audit of his A/c u/s 44AB as his profit % is less than 8% but income is not taxable?
ii) If answer to q-(i) is yes, then what is the relevance of sec 44AD? Is it not a loop hole of sec 44AD?
2) If Mr A has two business, say A & B. Turnover of business A & B are Rs. 80 Lakh and Rs. 120 Lakh respectively. Then, Is Mr A is required to get his a/c audited only wrt business B or both of his business is to be required to get audited u/s 44AB?
10 October 2013
{1} Section 44AD is applicable when the turnover of the assessee {Individual, HUF, Partnership except LLP} doesn't exceed the prescribed limit of Rs. 1 crore in the previous year. Under this he has to show at least a profit of 8 percent or higher as he desires..
Wheras Sec 44AB {Tax Audit} applicable when the turnover of the assessee exceeds 1 crore in the previous year..
{2} Whether he's engaged in single or multiple business, he's turnover will be taken as overall.. As per the provisions of section 44AB, one audit report for all the businesses is required. However in case different branches are audited by different auditors, the main auditor has to prepare a consolidated report considering the reports of all the branch auditors.
10 October 2013
1. You need to consider total income. Total income is defined under Section 5 of the Act. The total income referred to in section 44AD is before claiming deduction under chapter VI.
In your case, total income is in excess of exemption limit. Therefore to claim lower profit, you shall be required to maintain books under 44AB and get yourself audited under 44AD.
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