Budget 2016- impact on 44ab on limit increased u/s 44ad

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utpal jain (Querist)
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17 March 2016 as all we know that limit of sec 44AD has been increased to 2cr in Budget 2016. my que - if a person has a turnover of say 1.7 cr and he does not maintain books of accounts. now he can file return u/s 44AD and can show 8% and above presumptive income. as per sec 44AB a person shall get audit his books of accounts u/s 44AB if turnover exceeds 1cr. now question arises that he does not maintain any books so whether he has to get audit his books of accounts u/s 44AB as turnover exceeds 1cr? and if yes then what is the meaning of increasing the limit in 44AD.

ANIL KUMAR

ANIL KUMAR (Expert)
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19 March 2016 Dear Utpal Jain jee if profit is shown below 8% only then audit u/s 44AB is required . Please read section 44AB sub sec (a) ........ ;or sub sec (b) .....; or. There is or. Means if you are covered u/s 44AD then 44AB will be applicable only if you declare profit below 8% otherwise not.