How the 44AD is applicable in the following 2 cases:
1) Turnover 35 lakhs and income 5 lakhs. i.e.>8%
2) Turnover 40 lakhs and income 2.5 lakhs i.e. <8%.
Also turnover means gross or net turnover?
Thanks in advance
How the 44AD is applicable in the following 2 cases:
1) Turnover 35 lakhs and income 5 lakhs. i.e.>8%
2) Turnover 40 lakhs and income 2.5 lakhs i.e. <8%.
Also turnover means gross or net turnover?
Thanks in advance
in situation one where u r declaring more than 8% profit u dont need to get ur accounts audited . And in situation no. 2 u have to get ur account audited.
For turnover there are different views in different kind of business.
In situation 1, income will be calculated under normal provisions of the income tax act i.e provisions from sec 28 to sec 43C will be applicable but the income will be called 44AD income.Assessee need not maintain books of accounts or pay advance tax.
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