Sec 44aa & 44ad

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

22 June 2014 Is it necessary to claim 44AD if turn over is less than 1 crore or an asseessee can claim profit as computed on the basis of books of accounts maintained by him even if profit is less than 8% of turn over as shown by books of accounts
Eg-turn over 50 lakh
profit 3 lakh
and accounts has been maintained by assessee so can he claim profit to be 3 lakh and not use 44AD and as he is not using 44AD conditions of 44AD of audit of a/cs if profit declared is less than 8% then accounts to be audited shall not be voilated too. So can he show profit of 3 lakh with out audit being done

Nikhil Kaushik

Nikhil Kaushik (Expert)
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23 June 2014 1. it is not an option. once you are covered under 44AD, either you offer profit at 8% or above or claim lesser profit after maintaining books of accounts under 44AA and getting the audit done under 44AB.

2. if you want to show profit at 3 lakhs on a 50 lakhs turnover, books of accounts and audit is compulsory

Rupesh Jain

Rupesh Jain (Expert)
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23 June 2014 your actual profit is less than@ 8% of turover and turnover is less than Rs. 1 crore then you declare the profit @8% under the section 44AD.

but when your turnover is exceed Rs. 1 crores even profit is more than 8% then you have to take aduit on your accounts u/s 44AB

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