If co xyz has total annual turnover of Rs. 85,00,000/- (i.e. less than 1cr) and if I want to declared profit less than 8%(which is the requirement of section 44AD) without audit can I?
As per 44 AB audit is required only if turnover exceeds Rs.1cr.
But in section 44AD audit is required if you declared profit less than 8%.
My doubt is section 44AD is compulsory or optional?
In such if I don't go for 44 AD and I simply maintain my full books of accounts declaring profit less than 8% still audit is required ?
Dear Suraj,
As per Sec 44AD of Income tax Act ,
1) if the turnover does not exceed RS 2 crore it will be easily acceptable but one most dangerous Provision is that if you are not continue Sec 44AD then till 5 years from now you cannot be apply 44AD for income .
2) if you show income less than 8% if received in Cash and less than 6% if you received income through Bank , DD and Electronic Mode in that case audit is Mandatory and not voluntary.
So in last considering the above Provision please take a decision whether to follow 44AD or go to normal way.
But in Normal way you required to mained books of Accounts as per 44A of Income tax Act 1881.
CAclubindia
