29 May 2012
Dear expert, I am individual proprietor and my firm turnover was 1276000/- in FY 2011-12 and net profit thereon @.65% comes to Rs.8300/-. Whether I should get my accounts audited or not, as net profit is below the threshold limit of Rs. 180000/-. Please advise me.
30 May 2012
In your case Section 44AD is applicable. As per sub section 5 of Section 44AD, where the assessee declares a profit of less than 8% AND his total income exceeds the exemption limit is required to maintain books of accounts and get his accounts audited.
In your case, you are showing a profit of less than 8%. However, your total income does not exceed the exemption limit.
Accordingly, you are NOT required to get your accounts audited,
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