When there is a need to show 8% profit

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SACHIN (Querist)
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02 September 2014 PLS EXPLAIN SEC 44AB WITH RESPECT TO SEC 44AD

ISSUE IF A CLIENT BELOW 1CR & SHOW PROFIT LESS THAN 8% IS IT OK???

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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02 September 2014 1. Section 44AD(5) provides that the assessee will be required to maintain books of accounts and get his accounts audited if the assessee declares profit less than 8% of gross receipts AND his income exceeds the maximum amount not chargeable to tax.

2. If the income of the assessee does NOT exceed the exemption limit then he is NOT required to get his accounts audited.