28 June 2011
An assessee(individual) deal in manufacturing of spare parts of machinery and has turnover just above 40 lacs with Net profit less than 8%.He maintains all the records/ books of accounts. He is never been assessed under presumptive taxation i.e. u/s 44AD/AE/AF earlier.
Now as per Sec 44AB, he is not required to get his a/c audited but with the reading of Sec 44AD he is required to get his a/c audited as his net profit is less than 8% as specified by Sec 44AD.
Now from point of LAW, what should be right course 1) assessee file ITR without audit & with net profit less than 8%( as normally done)
2)either he has to get a/c audited or declare income/pay taxes as per Sec44AD i.e. at 8%( comply with Sec 44AD)
If the right action be point no:2, then does it seems that there is burden on assessee to get his a/c audited in every case( whether turnover less than 60 lac or more) or declare net profit at 8% or more (as per Sec 44AD,even if he does want to opt for presumptive income)
29 June 2011
If you are claiming the income u/s 44AD then the profit should be 8%. If it is less then 8% you should get the accounts audited and then file the return.
29 June 2011
Sir but the problem is that while filing ITR through software(not of I. Tax Department), software forces for auditing info or profit more than 8%, while assessee is not opting for sec44AD. He just want to file ITR by complying normal provisions of PGBP
and i want to know what would be right action among the two options mentioned in my first query?
CAclubindia
