File the return in itr 4 without audit or not

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SARBJIT (Querist)
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04 November 2011 Hello sir,
i m discussing the situation as under that i have already discuss with lots of tax expert but no one is giving me the similar / right view.

The situation is: -
I m having a sale of 30lakh from Export sale of fabric & against this sale i am having a net profit as per books is 150000/-. I am also having some other income like as rental income, int. income, draw back etc. Sir, my main point is here that i want to consult to you, is it possible to file the ITR without audit (as per section 44-AB) and i also don`t want to go with section 44-AD of income-tax act`1962. Sir, some of the tax expert and also CA is saying to me that we can`t file our business profit below then 8% as my net profit is coming as per books is near 5.20% (approx).

Now, my main question to you sir is it possible to file the return in ITR 4 without audit in the above situation or not?
and i also don`t want to go with section 44-AD.

Hope for the best suggestion.

Thanks & Regards
sarbjit

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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04 November 2011 Dear Sarbjit, tax audit under Section 44AB arises only if the total sales exceed Rs. 60 lakh.

Further, if you do not want to opt for Section 44AD, then you can file a normal return.

Accordingly, in your case, it is not mandatory to get your accounts audited.

You will have to file ITR 4 instead of ITR4S.

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Vivek Mehta (CA, DISA,CS, MBA)

Vivek Mehta (CA, DISA,CS, MBA) (Expert)
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04 November 2011 Dear Sarbjit,
When we look into the aspects clearly we'll find that you are required to get get your books audited if the total profit is bellow 8% of your turnover...but the oroit will include your things of duty drwback figure and such other incomes which are directly related with your business.. so more can not be said here...as the situatipon is not clear that how and what all are the sources of your indirect income that you are quoting.

But yes if the over all profit falls bellow the 8% then you'll be required to get your books of accounts audited.

else declare the income to leastly 8% (from the business main activity) and then file the return in ITR 4S

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Vivek Mehta (CA, DISA,CS, MBA)

Vivek Mehta (CA, DISA,CS, MBA) (Expert)
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04 November 2011 Further in case on any problem or ambiguity you can feel free to contact me on 09413118508 or you can write me at vivekmehta@icai.org

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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04 November 2011 Dear Mr. Vivek, kindly note that it is not mandatory to opt for Section 44AD. Every assessee carrying on retail business is not automatically covered by Section 44AD. An assessee is covered only if he opts for the same.

An assessee can choose the normal provisions of the Income Tax Act.

If he opts for the normal provisions, tax audit will be mandatory only if the gross sales cross Rs. 60 lakhs.

Vivek Mehta (CA, DISA,CS, MBA)

Vivek Mehta (CA, DISA,CS, MBA) (Expert)
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04 November 2011 Dear Siddhartha.
The schemea is not a voluntar scheme...
the options are like either you go for 44Ad or Go for Audit in case of Business Assesse but in no case the assessee carrying on business can be relaxed for the perview of the presumptive taxation.