30 October 2012
Want to know that if a business has turnover of say 48 lakhs and has profit of less than 8% of turnover, maintaining books of accounts and is availing deductions of chapter vi-a (deductions of 80c, 80ccd, 80g etc.)then is audit compulsory. pls clarify...
31 October 2012
the presumptive income scheme(44ad) is not compulsory,its optional..one can opt to declare his income below 8%..however in that case, he will have to maintain books of accounts as prescribed under 44AA(2) and also get his books audited u/s 44AB if income exceeds exempted limit.
31 October 2012
yes rightly said and i would like to add as below : If income of the Assessee is below 1.8 lakhs after allowing deductions i.e 80C, 80G etc then audit is not compulsary however if the income is more than the basic exemption limit but less than 8 % of turnover and if assessee opts for 8% option then audit is not required to be done.
However it is advisable to show 8% as in your case 8% of 48 Lakh is 3.84 lakh and You will be allowed 1.8 lakh + 1 lakh under 80C and the Tax payable will come to around 11000/-.
CAclubindia
