22 July 2011
IF an assessee has Gross Total income of280000 and Deduction under Chapter VIA of120000. Will he require to get the books of accounts audited? Is he required to declare 8% of Turnover as income U/s 44AD?
Secondly if an assessee has a loss from business? Is he require to declare 8% of Turnover as profit? Or is he required to get books of accounts audited incase if he files his return as loss return inorder to carry forward the loss?
22 July 2011
Then Sir what is the importance of Provision of Section 44AD(5). Will u please guide me? As in the first case his total income is below taxable limit and profit and gains from business is less than 8% of turnover.In this case both the condition of Sec 44AD(5) are satisfied.
22 July 2011
Sec 44AD(5) says that in case the income is below basic exemption limit, then no need to get books of accounts audited. But the interpretation is that in case the presumptive income of 8% is also below taxable limit, then no need to get books of accounts audited. Say for example, the turnover is Rs. 19 lakhs, in this case, the presumptive income comes to Rs. 152000, which is below taxable limit. Here, even if the assessee shows the income as Rs. 140000, it wont matter as the presumptive income itself is below taxable limit.
CAclubindia
