Applicability of Section 44AB

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BAL KRISHAN GARG (Querist)
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08 March 2010 Dear All ,
A had done job work during 2008 - 09 worth slightly more Rs. 40.00 Lacs and having proprietory business having Tin No. of total Turnover Rs. 3 Lacs agreegating Rs. 43 Lacs approximately .
Whether I should apply the provisions of Section 44AD and calculate 8 % of total job work as A's Income and profit as per profit and loss account for the proprietorship business and file the return of A ?
Or should I go for tax audit u/s 44 AB and make the books for both business seperately and audit of them and file the return now ? Whether the penalty provisions of not filing of audit report will apply in this case as no hard copy is to be filed with the department ?
I request you all to suggest me the best way to go .

Thanks to all

( BAL KRISHAN GARG )
my e-mail id : gargbk2001@yahoo.com

CA PRIKSHIT GUPTA

CA PRIKSHIT GUPTA (Expert)
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08 March 2010 if your gross receipt is over 40 lacs than you have to maintain books and got audited. there is no question of apply 44AD and declare 8% profit. Penalty can be imposed by the IT department as no audit report is submitted till now.