20 July 2013
An eligible assessee who claims that his profits and gains from the eligible business are lower than the profits and gains specified in sub-section (1) and whose total income exceeds the maximum amount which is not chargeable to income-tax, shall be required to keep and maintain such books of account and other documents as required under sub-section (2) of section 44AA and get them audited and furnish a report of such audit as required under section 44AB.
◊This subsection talks of two cumulative conditions for applicability of 44AA and 44AB: - i. The Income from eligible business is lower than 8% of Turnover or Gross Receipts, AND ii. The “TOTAL INCOME” exceeds the maximum amount not chargeable to tax.
If (ii) condi. not fulfilled then 44aa & 44ab not appli. and assessee will not have to pay tax. What is total income includes -only business income OR -income from all sources after deduction??????
20 July 2013
Agree with the expert. . Before the condition (ii) the connective used is "and" it has become the topic of every discussion held on Section 44AD. . So, your inference is right but the intention of law makers was some what different. .