04 March 2014
Section 44ad - maintenance of books of accounts
U/s 44AD , if estimated net profit for the year is more than Rs.1,20,000 and net profit % is more than 8%.. other conditions satisfied, then maintenance of books of accounts required or no. ?? Please explain a bit in detail
However the assessee does not fulfill condition under 44AD as the net profit exceeds 120000 ( I read the text of the section which says if net profit exceeds 120000 then books of accounts to be maintatined ) . Please throw some light whether my interpretation of the section is correct and whether books of accounts need to be maintained
04 March 2014
If an assessee falls under Section 44AD, he is NOT required to maintain books of accounts provided he shows a MINIMUM income of 8% of the gross receipts/ turnover.
In your case, if the net profit is MORE than 8% and profit is MORE than Rs. 1,20,000 then books of accounts are NOT to be maintained.
CAclubindia
