Section 44aa and 44ab

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

19 September 2013 If business having turnover RS 2000000

and showing 8 % profit = 160000

audit is not compulsory ?

and books of accounts is also not require ?

if firm incurring losses than same rule will apply on it or not ?

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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19 September 2013 In case of loss actually the gross turnover will decide whether tax audit is compulsory or not as if it exceeds Rs 1 Crore for business and 25 lakhs for profession thne even in case of loss tax audit is applicable.

Querist : Anonymous

Querist : Anonymous (Querist)

19 September 2013 turnover is less than RS. 6000000 . so audit is not require but what about books of accounts. firm having loss of RS. 500000. what i should do ?

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CA Pallav Singhania

CA Pallav Singhania (Expert)
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19 September 2013 Agree with our Expert's opinion...

Section 44AB would be applicable if the Gross turnover exceed the prescribed limit that's 1 crore p.a

Querist : Anonymous

Querist : Anonymous (Querist)

19 September 2013 in case of individual if having loss or income less than basic exemption limit( if declare less than 8 % of turnover) than neither books of accounts require or not audit require. same can be apply in case of partnership firm

Querist : Anonymous

Querist : Anonymous (Querist)

19 September 2013 https://www.caclubindia.com/articles/some-lights-on-sec-44aa-44ab-44ad--17846.asp#.UjrIGNLWVr0.

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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19 September 2013 If the gross receipts for the year exceeds rs1,20,000 then if sec 44AD is not invoked then books of accounts as per sec 44AA is required to be maintained.

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Querist : Anonymous

Querist : Anonymous (Querist)

19 September 2013 For Turnover i Have to see rupees 100000 limit ?

if i Declare Presumptive Profit 6000000*8% = 480000. than i can deduct salary and interest on capital.

but how to do accounting of these in accounts.

because there is loss of Rs. 500000 in actual books without providing interest and salary

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Nikhil Kaushik

Nikhil Kaushik (Expert)
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21 September 2013 If it is an individual, then no audit is required as the profit is less than the exemption limit.

In case of partnership tax shall be payable at 30% on Rs 160,000.