05 February 2011
1)In determining annual value the following factor should be taken into consideration , except-- a) Actual rent rev b)Fair rent of the property c)Deposit recv from tenantsd) standard rent 2)Provision of section 44AD shall not apply in the follwing cases- a) where gross recipts exceed Rs. 60 lak b)where assessee claims that the profit and gains form the business are less than Rs. 8% of gross receipts c)Either gross recipts exceed Rs. 60 lac or assessee claims that the profit and gains form the business are less than Rs. 8% of gross receipts d)Both gross recipts exceed Rs. 60lac or assessee claims that the profit and gains form the business are less than Rs. 8% of gross receipts
Once the Gross receipts crosses Rs.60 Lacs the Presumtive taxation benefit given under Sec 44AD cannot be applied. i.e. Sec 44AD will be applicable only when the Gross Receipts does not Exceed Rs.60 Lacs.
If Gross Receipts Exceeds Rs.60 Lacs then Tax Audit as per Section 44AB is applicable.
Further if an Assessee offers an income which is less than the Prescibed % ( 8% in case of Sec 44AD ) then Tax Audit becomes mandatory.
I would further like to clarify that if an assessee wants to offer MORE than the Prescribed % as per Presumtive Sections (IN THIS CASE SECTION 44AD )then there is no requirement of Tax Audit.
Hope i have answered the issue posted. however if u want any further clarifications u can join my Community - "Lo Aca"
CAclubindia
