27 June 2011
A PERSON DECLARING INCOME LOWER THAN 8% NEED TO MAINTAIN ACCOUNTS AND GET IT AUDITED BUT IF A PERSON SHOWS HIS INCOME LOWER THAN 8% WHICH COMES BELOW MINIMUM EXEMPTION LIMIT THEN DOES HE NOT REQUIRED TO MAINTAIN ACCOUNTS AND GET AUDIT DONE . IF NO THEN IN THAT CASE EVERYBODY WOULD SHOW HIS/HER IN COME BELOW MINIMUM EXEMPTION LIMIT , IS IT PRACTICALLY CORRECT..
27 June 2011
Law has presumed that asseessee will show the actual profit/loss and the law has been framed accordingly. If the net profit is less than 8% but more than minimum exemption limit then the accounts have to be audited as per law. Now showings more or less than actual profits is a case of fabrication of accounts and there are separate provisions in law for this.
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