Clarification on defective return

Page no : 2

RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 31 October 2017

@ Nirma Agrawal.,

u/s 44ad /ada we ll show the profit proscribed limit. If we get audit for the accounts...

The same is follow in ITR 3 "NOB" we ll show profit 8 %....

In case we ll show less than 8% in ITR 3 then we must follow u/s 44AA....

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RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 31 October 2017

(u/s 44ad /ada we ll show the profit proscribed limit. If we can't get audit for the accounts...)*

CA Amit Kumar (Chartered Accountant) (342 Points)
Replied 31 October 2017

@ Nirma Agrawal,
As per section 44AA if we presume income less than 8% of the turnover then maintenance of books of accounts is mandatory.

Pallav Bansal (CA Final) (372 Points)
Replied 31 October 2017

You all are fighting without reading 44AD(4), 44AD(5) and 44AB(5).

Now,
If assesse opting for 44AD (means having bussiness) show Profit less than 8% (or 6% on the turnover received via banking mode including account payee cheque)
& *his income exceeds slab rate applicable to him* -> 44AD(4), 44AD(5)

THEN as per section 44AB(5) he is required to get his accounts audited irrespective of the amount of turnover and also have to maintain books as per section 44AA.

CA Amit Kumar (Chartered Accountant) (342 Points)
Replied 31 October 2017

I was saying the Same Mr. Pallav

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Pallav Bansal (CA Final) (372 Points)
Replied 31 October 2017

Dear Mr. Kumar,

Sorry to say but I read your answers here.
I have a suggestion for you - Try to answer/reply the query in full incorporating all relevant information in one comment itself instead of giving short reply.
Like I incorporated Ms. Agrawal issues as well.

By the way Mr. *Sajin S Raj* 4 fields as written by Ms. Agrawal is mandatory to disclose even in case of Presumptive Taxation.

nirma agrawal (22 Points)
Replied 31 October 2017

thanks Mr pallav actually my query is than ...
account get audited if your turnover is less than 8% irrespective of the turnover and also have to maintain books as per sec. 44AA

Sajin S Raj (Student) (52 Points)
Replied 02 November 2017

Hi. Thank you all. But query still remains unresolved.

The receipts are through bank so 6% is the presumptive income for AY 17-18.

I have shownn Gross receipts as 1000000

Gross proft as 60000

expenses as 0

net profit as 60000

in the last four lines.

Is it required to show gross receipts in the main P&L also ? I don't think so. 44AA is applicable only if the receipt exceeds 1000000 right ? Further the nature of business is not notified under sec 44AA.

What is the way out ? Shall I reject the defective return by replying that the gross receipts has not exceeded 1000000 so 44aa is not applicable and i have offered 60000 as presumptive income which I am eligible for?