44AD and 44AB
This query is : Resolved
27 July 2016
Dear Experts,
is it necessary for all individuals carry Business and having profit less than 8% from their Gross Receipt or Turnover to get their accounts Audited even they have not gone for 44AD??
Like if a person starts a business and has Net profit less than 8% of its Turnover should he get his account audited even he doesnt wants to adopt 44AD??
PLS RPL URGENT
27 July 2016
Under Section 44AD, income would be presumed to be 8% of the total turnover of the assessee, only if the total turnover of the assessee is less than Rs. 1 Crore. In case the total turnover, of the assessee is more than Rs. 2 Crore, income would be computed as per the normal provisions of the Income Tax Act (i.e. Revenue –Expense-Depreciation) and the assessee would also be required to get his accounts audited under section 44AB .
27 July 2016
Like if an assessee has Turnover of say Rs.70lakh in Fy and has actually loss in the businees in that Fy say Rs.2.5lakh
so would he be liable to show profit at 8% as per section 44AD?Or if he
27 July 2016
Or if he doesnt opt for 44AD would he b liable for Tax audit as he is showing profit less than 8%?
27 July 2016
yes he is liable to get his account audited if he show profit less than 8 %.
28 July 2016
sir m saying if assesse doesnt opt for 44AD and has business loss in.his books then will.be liable to.Tax audit but his turnover is only 70 lakhs.
44AD is optional to assessee
28 July 2016
there are 2 opinions about this......many of the people are of the opinion that accounts should be audited....
while some are of the opinion, not opted for 44AD + profit is less than 8%....audit is compulsory only if the the said profit is above 250,000 i.e. maximum amount NOT chargeable to tax
while some are of the opinion, not opted for 44AD + profit is less than 8%....audit is compulsory only if the the said profit is above 250,000 i.e. maximum amount NOT chargeable to tax
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