16 March 2017
In Sec.44AD, we tax 8% profit on turnover and if we have to show less than, then accounts should be audited u/s 44AB provided t/o is less than 1crs. in ITR-4S.
But if t/o is less than 1crs. and we are showing profit after deducting expenses from income in ITR 4 , and such profit less than 8% of turnover, then accounts need to be audited?
16 March 2017
If an assessee claims that his profits and gains from eligible business are less than 8% of the gross receipts and whose total income exceeds the maximum amount not chargeable to tax, the asseessee shall maintain the books of account as prescribed U/S 44AA and get them audited under section 44AB of the Act.
Here the catch lies in the words "and whose total income exceeds the maximum amount which is not chargeable to income-tax"
Since the words start with ‘and’ therefore both the conditions need to be fulfilled for an assessee to be required to get his accounts audited u/s 44AB if his total income exceeds the maximum amount which is not chargeable to income-tax.
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