29 May 2012
Dear Sir, I want to know that someone's cloth trading business in FY-11-12 turnover 37 Lakh & he could not show profit is 8% & he show profit 3%, so, his accounts is auditable or not ? What can he do ? Please suggest me. Thank You
Guest
Guest
(Expert)
29 May 2012
Yes in this case accounts are required to be audited.
30 May 2012
In your case Section 44AD is applicable. As per sub section 5 of Section 44AD, where the assessee declares a profit of less than 8% AND his total income exceeds the exemption limit, he is required to maintain books of accounts and get his accounts audited.
In your case, you are showing a profit of less than 8%, which comes to Rs. 1,11,111.
Your total income does not exceed the exemption limit.
Accordingly, you are NOT required to get your accounts audited,
CAclubindia
