RAJ KUMAR
(FINANCE MANAGER)
(1393 Points)
Replied 01 September 2013
IF YOU DONT WANT TO HAVE AUDIT THEN DECLARE 8% PROFIT AND SUBMIT RETURN U/S 44AD.
S.R.Associates
(Tax & Investment Consultants)
(115 Points)
Replied 01 September 2013
Srikumar,
Your client will have to get his books of account audited U/s 44AD if his turnover is less than the limit specified in Section 44AB i.e. Rs.1 Crore and He wants to declare profit less than 8% of his turnover.
If he doesn's want,Then just declare 8% profit in IT Return and file it.
S.R.Associates
Tax & Investment Consultants
Cell:9668595760
e-mail:srassociates0713 @ gmail.com
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CA Pallav Singhania
(IT System Auditor)
(33262 Points)
Replied 01 September 2013
As per section 44AD of the Income Tax Act, 1961
Every eligible assessee undertaking eligible business can declare minimum 8% of total turnover or gross receipts as profit from such business and this deemed income provision is only applicable to business whose turnover is less than Rs. 60 Lakhs and profit and gain from such business has to be minimum of 8% of such Turnover/Gross Receipt which means assessee can declare higher income. In case assessee wants to declare lower amount than he is has to undergo tax audit.
Eligible assessee
Individual / Firm with resident status only (Not applicable for LLP’s)
Business
Any business (excluding the business of transport) having maximum gross turnover / gross receipt Rs. 100 Lakhs
Minimum deemed profit / gain:
Minimum 8% of such gross turnover or gross receipts (Profit lower than 8% can be claimed, but in that case Audit u/s 44 AB is compulsory)
Tax Audit Limits
For Business Turnover/Sales to Exceed:
|
Assessment Year |
Prior to Year 1.4.2011 |
1.4.2011 to 31.3.2013 |
For Year 2013-14 |
| Amount Exceeding (In Rs.) |
40 Lakhs |
60 Lakhs |
100 Lakhs |
Regards,
Prashant R. Karia
(CA AT FIRM)
(82 Points)
Replied 01 September 2013
Rohit paryani
(Student)
(31 Points)
Replied 02 September 2013
Sanjay Diwakar
(Audit Manager)
(237 Points)
Replied 02 September 2013
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