1) if a person having Turnover from Trading Business Rs. 31 Lac and also maintain all Books as prescribed u/s 44AA need not show profit at 8% because he is not opting Presumptive taxation for computation of income.
Some of Income Tax Practitioner are of the opinion that-
all Business cover under this section and even if assessee maintaining books of A/c he has to show profit at least 8% , if he is showing profit less than 8% then he has to keep Books of A/c and also need to get his books of A/c audited
My Views are
1) Presumtive Taxation viz 44AD, 44AE are special Provision which are optional and not the mandatory.
2) if any taxpayer keeping books of A/cs and and wants normal provision of taxation then he is free to show any percentage of profit might be lower than 8% or more
16 August 2011
44AD/44AE are provisions only, nor mandatory for assessee to avail, however if the business turnover vs profit declared is less then 8% then audit u/s 44AB has to be conducted, otherwise the file would get selected for scurtiny. (not applicable if the gross income is below taxable limit in case of individual/ HUF)
16 August 2011
In view of the definition of 'eligible assessee' and 'eligible business' section 44AD seems to be mandatory in nature. Whereas the profit percentage viz., 8%, 8% is discretionary subject to the satisfaction of other conditions mentioned in clause (2) to (5) of the said section.
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