13 May 2013
As per section 44AD if you claim profit below 8% and your gross total income is above the income chargeable to income tax than you have to get your books of account u/s. 44AB. In your case, Your net profit percentage is 5.03% which is below the 8% as required under section 44AD and your gross total income is above basic exemption limit so you have to get your books of account audited.
15 May 2013
Even if you are not opting for Section 44AD, you have to follow it.
Subsection (5) of section 44AD reads as follows: " Notwithstanding anything contained in the foregoing provisions of this section, an eligible assessee who claims that his profits and gains from the eligible business are lower than the profits and gains specified in sub-section (1) and whose total income exceeds the maximum amount which is not chargeable to income-tax, shall be required to keep and maintain such books of account and other documents as required under sub-section (2) of section 44AA and get them audited and furnish a report of such audit as required under section 44AB."
and meaning of eligible assessee is as follows:
" (i) an individual, Hindu undivided family or a partnership firm, who is a resident, but not a 44limited liability partnership firm as defined under clause (n) of sub-section (1) of section 2 of the Limited Liability Partnership Act, 2008 (6 of 2009) "
Hence, if you are an eligible assessee and claiming that your profits are below 8% and your income is above exemption limit then you have to maintain books of account and get them audited.