Section 44AD

definatly,

assesse is liable for audit u/s 44ab and maintain accounts u/s 44aa.

but if his total income is not exceed the maximum limit, then he is not liable for audit his accounts even he shows a lower profit.

yes it is compulsary...he is liable for tax audit if he is not showing bet profit @ 8%

Mr. Rajesh

The Assessee is liable to have Tax Audit U/S 44 AB And Also have to maintain Proper Books of Accounts U/s 44AA if he shows his Net profit less than 8% of his gross receipts.

Notwithstanding anything contained in the foregoing provisions of this section, an eligible assessee who claims that his profits and gains from the eligible business are lower than the profits and gains specified in sub-section (1) and whose total income exceeds the maximum amount which is not chargeable to income-tax, shall be required to keep and maintain such books of account and other documents as required under sub-section (2) of section 44AA and get them audited and furnish a report of such audit as required under section 44AB.

Originally posted by : JAY PRAKASH PATIDAR
	Notwithstanding anything contained in the foregoing provisions of this section, an eligible assessee who claims that his profits and gains from the eligible business are lower than the profits and gains specified in sub-section (1) and whose total income exceeds the maximum amount which is not chargeable to income-tax, shall be required to keep and maintain such books of account and other documents as required under sub-section (2) of section 44AA and get them audited and furnish a report of such audit as required under section 44AB.

So, as per these wordings, if the assesse does not have any other income, then No Audit is required.. Right?

I think all of you are either not able to understanding the question presented by Mr. Rajesh. The answer should is yes, The assesee is required to get his books of accounts audited, just because he is claiming profit less than 8%, though his gross total income does not exceed Rs.60.00 Lacs. Please interprete the section carefully.

44AD. (1) Notwithstanding anything to the contrary contained in sections 28 to 43C, in the case of an eligible assessee engaged in an eligible business, a sum equal to eight per cent of the total turnover or gross receipts of the assessee in the previous year on account of such business or, as the case may be, a sum higher than the aforesaid sum claimed to have been earned by the eligible assessee, shall be deemed to be the profits and gains of such business chargeable to tax under the head “Profits and gains of business or profession”. PRESEMPTIVE SCHEME

(5) Notwithstanding anything contained in the foregoing provisions of this section, an eligible assessee who claims that his profits and gains from the eligible business are lower than the profits and gains specified in sub-section (1) and whose total income exceeds the maximum amount which is not chargeable to income-tax, shall be required to keep and maintain such books of account and other documents as required under sub-section (2) of section 44AA and get them audited and furnish a report of such audit as required under section 44AB.

He is required to get his accounts audited only if his total income exceeds the Basic Exemption limit...

if it does not exceed basic exemption limit, then even he declares net profit below 8 %,,, he is not required to get his accounts audited..!!

Mr. Rajesh

The Assessee is liable to have Tax Audit U/S 44 AB And Also have to maintain Proper Books of Accounts U/s 44AA if he shows his Net profit less than 8% of his gross receipts.