Return of income for self employed

This query is : Resolved

deepak kumar (Querist)
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13 April 2015 Dear Expert
one of my friend has self business (coaching center).his annual income is around is Rs.1200000/-.please tell me audited is compulsory for him OR He can file the return U/s 44 AD.i.e 8% of Gross receipt Rs 96000/-.
also confirm to me the slab will be applicable on Rs.96000 or not.

for the purpose of Car loan he requires a balance sheet ,please suggest me the balance sheet will be signed by CA or it will be made roughly.

Thanks in advance.

Regards
Deepak Kumar

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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13 April 2015 Audit is not compulsory for him. This being professional income 44AD not applicable. Balance sheet has to be signed by CA.
For 96000 no tax payable.
As gross receipts exceed 10 lacs maintenance of books of accounts is compulsory. Compute income as per books of accounts, pay taxes and file the return.

deepak kumar

deepak kumar (Querist)
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13 April 2015 Sir
if we declare income less than 10 lac then maintenance books of account is necessary ?
also confirm one thing for the purport of car loan ,return is sufficient or balance sheet we will have to share with bank.

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CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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13 April 2015 Don't suppress the income to avoid maintenance of accounts. Unless you maintain books of accounts you will not be able to prepare balance sheet.
If the bank ask for the balance sheet share it with them.