44ad

This query is : Resolved

CA. Bhabani , FCA, DISA, DIRM (Querist)
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07 November 2011 One of my assessees has annual turnover of Rs.38 Lakh in the year 2010-11.He wants to show his income u/s 44AD @ 5.5% i.e.Rs.209000.He has savings of Rs.50000.Hence his net taxable income is Rs.159000.Whether he is required to get his accounts audited u/s 44AB as per new provision.Pl suggest.

Rajeev Khetan

Rajeev Khetan (Expert)
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07 November 2011 As per your detail In my openion this is required for audited u/s 44ab becouse his taxable income below 5% of total turnover.

CA. Bhabani , FCA, DISA, DIRM

CA. Bhabani , FCA, DISA, DIRM (Querist)
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07 November 2011 But the twin condition for audit is not satisfied.as per my view the assessee need not go for audit if he shows income lower than 8% and his total income does not exceed the taxable limit.

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CA MANOJ GUPTA

CA MANOJ GUPTA (Expert)
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07 November 2011 U r right Mr Bhabani but in any case the AO may demand books saying how u calculated ur NP at 5.5 %
If u show NP at 8 % no such question will arise