27 February 2014
But if i dn't want to opt for Sec 44AD; then i can go for ITR-4..?? Shall i need to maintain Books of Accounts if Gross Recipts is Rs 12 Lacs in the FY..?
28 February 2014
Section 44AD is applicable if the following conditions are satisfied:
1. Assessee is an individual, HUF or firm. 2. Assessee is NOT a professional, NOT carrying on agency or commission business. 3. The gross receipts/ turnover DOES NOT exceed Rs. 1 crore. 4. Assessee shows a MINIMUM profit of 8% of the gross receipts/turnover.
The requirement is to show MINIMUM 8%. Assessee can show HIGHER profit also.
In your case you CAN file ITR 4S and show higher profit.
28 February 2014
Dear Nikhil, ITR 4 will be applicable only when the profits shown are LESS than 8%. It is not applicable if turnover is less than Rs. 1 crore and profit is shown MORE than 8%.
This is evident from the fact that Section 44AD starts with
"Notwithstanding anything to the contrary contained in sections 28 to 43C...."
It over rides the general provisions. The general provisions will be applicable only when conditions of Section 44AD are NOT satisfied.
CAclubindia
