q. that in sec. 44aa
120000 i.e. net profit or gross profit
on sec. 44af(retailer) is having turnover less than 4000000 and profit more than 120000
when 44aa apply or not
Gopal Sengar (CA STUDENT) (531 Points)
25 September 2010q. that in sec. 44aa
120000 i.e. net profit or gross profit
on sec. 44af(retailer) is having turnover less than 4000000 and profit more than 120000
when 44aa apply or not
RAJ KUMAR
(FINANCE MANAGER)
(1393 Points)
Replied 25 September 2010
IT IS NET PROFIT AND IN RETAIL BUSINESS THIS LIMIT IS NOT APPLICABLE BUT FROM AY 2011-2012, WE HAVE TO NEED 8% OF NET PROFITS OTHERWISE TAX AUDIT IS APPLICABLE.
requirement of section 44AA is if total income exeeds rs 120000 or total sales exeeds 1000000 in any one of three years preceding the p/y then person is required to maintain such books of accounts.
gopal in your case retailers profit is more than 120000 hence section 44AA is applicable.
if assessee claims that his income is lower than the estimated income and his income exceeds the max. amt not chargeable to income tax during such p/y then he will have to maintain books of a/c and get his a/c audited
Dinesh Kumar Agarwal
(Article clerk)
(117 Points)
Replied 25 September 2010
I Think as per 44AA profit means Net Profit before tax.
44AF in special provision and if turnoveris less than 40,00,000 than assessee may opt for this section and under this section 5% of turnover is considered as taxable income. And assessee is not required to maintained books as per section 44AA.
But if he is not choose this section 44af than he is required to get audited his accounts u/s 44AB and 44AA also apply for maintenance of books.
Section 44AF deleted and new prov inserted 44AD wef 01/04/2011
Live Course on Invoice Management System (IMS) - 2nd Batch(With Recording)
CAclubindia
