07 March 2011
Respected Members, I had some query regarding section 44AD.If an assessee engaged in the business of clothes & having a turnover of 58 lacs for Financial year 2010-11.Then what is the tax assessment procedure of the same & asessee also dont want to offer income @8% prescribed u/s 44AD. 1. Whether any way to offer income below 8% without any tax audit. 2. Whether it is compulsion on asessee to opt for section 44AD. 3. As per normal calculation his profit percentage works out to be 4% & he wants to offer the same.
Waiting for reply at ur earliest thanx in advance....
The Provisons are very clear, if an assessee offers income below the prescribed persentage, then tax Audit becomes MANDATORY.
W.R.T your Second question there is no complusion to Opt for Section, the Section perse says that the Assessee could Choose Presumtive taxation in which case Books of Accounts need not be maintained, but if he opts out of Sec 44AD then regular provisions of maintaining Books of Accounts applies
W.R.T your 3rd Quesion, if the Profit percentage works to 4% which is lesser than 8% as per Sec 44AD, Tax Audit becomes MANDATORY.
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