25 November 2014
Ours is a partnership firm. In Fy 2013-14 sales turnover was Rs 83 Lacs below tax audit limit. Can I file the IT Return u/s 44-AD by declaring the exact nett profit as of 8.00% ? Can we do with partnership firm also ? If we file the return u/s 44-AD, shall it be accepted as it is and there wont be any chance of scrutiny because our profit is not less than 8.00%
26 November 2014
Yes, you can do so. However you are free to declare higher income. If you are filing return under the provision 44AD you are exempted from maintenance of books of accounts as prescribed u/s 44AA. The A.O. cannot ask explanations of credits of bank entry if there is a nexus with the transaction and gross receipt or turnover.
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