When audit provision will apply to assessee covered u/s 44ad

This query is : Resolved

ullas vijayvargeeya (Querist)
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12 August 2013 Respected Experts,
My queries is related to section 44AD.
firstly I want to invite your humble attention on the provision of sec44AD(5)that "Notwithstanding anything contained in the foregoing provisions of this section ,an eligible assesse who claims that his profit and gains from the eligible business are lower than the profit and gains specified in sub-section (1)and whose total income exceeds the maximum amount which is not chargeable to tax shall be required to keep and maintain such books of account and other document 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."
To my knowledge it means if a assesse wants to show his income less than income comes u/s 44AD and his total income is exceeding the amount not chargeable to tax than he is required to keep and maintain books of account u/s44AA and to get his account audited.

My queries is regarding this audit provision that everyone try to make it bypass of tax evasioning by showing his total income less than the amount not chargeable to tax which In my view point it is not the intention of the law makers.

Therefore I humble request to tell me that may it be a way of tax planning through showing of total income less than the amount not chargeable to tax because in this case books of account are not required to be maintained and not to be audited.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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12 August 2013 The department has got enough officers to monitor such incidences and tax planning through tax evasion may invite Scrutiny Notices also which is a costly affair.
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So, tax-payers should not prefer the risky bypass . By paying "Toll-tax" they must prefer the smooth "Highway" to reach safely and comfortably at the destination.
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