25 December 2013
An assessee can show income less than 8% of gross receipts provided his income does not exceed the exemption limit, i.e., Rs. 2 lakh or 2,50,000 (senior citizen) or 5,00,000 (super senior citizen)as the case may be.
In such a case, he is NOT required to maintain books of accounts and NOT get his accounts audited.
26 December 2013
Some CAs are saying that you can file ITR4 showing less than 8% (which is required as per Sec. 44AD) maintaining books of account without doing audit.But as per my knowledge if a businessman not showing profit as per Sec. 44AD than he has to do audit. Kindly clarify me and give me suggestion what to do. I have doubt that if i file ITR 4 showing profit less than 8% than ITO will issue notice for not filing audit report. The T.O. is 96 lacs
26 December 2013
Please read Section 44AD(5) which provides that an assessee who shows income less than 8% of turnover AND whose total income EXCEEDS the maximum amount not chargeable to tax is required to maintain books of accounts and get his accounts audited.
Accordingly, BOTH the conditions have to be satisfied simultaneously:
1. Income declared is less than 8% AND 2. Income EXCEEDS the exemption.
So if you show income less than 8% AND income is less than exemption limit, then assessee is NOT required to maintain books of accounts and NOT required to get his accounts audited.
CAclubindia
