44ad

21 November 2016

What is the meaning of basic exemption limits in proviso of section 44AD Rs. 2,50,000 or 8% of turnover

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3 Replies

rohit singhal (ca) (24 Points)
Replied 21 November 2016

U/s 44AD of Income Tax Act An assessee can file his return on the declared income of Not less than 8 % of total turnover.

for Example:

If Net Turnover = 37,50,000

then Declared Income Can not be less then 3,00,000(8% of turnover)

Hence Tax on income Would be as Folllows:

On First 250000=0

on rest 50000=5000(10%)

Hence Net Tax payble =5000

abhishek agarwal (237 Points)
Replied 22 November 2016

suppose in given example if he declares income of 200000.do he requires to go for sec 44AA and 44AB

CA VIRAL SANGHVI (Finance head) (681 Points)
Replied 22 November 2016

Yes if the income of the assesse is less than 8% than he/she has to make his/her books of accounts audited.

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