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
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
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