Section 44ad

Tax queries 576 views 3 replies

ca.r.harirao

partner

35 Points Joined May 2011

AS PER THE NEW PROVISIONS OF SEC44AD CAN APARTNERSHIP FIRM (ELIGIBLE ASSESSEE) ENGAGED IN MANUFACTURING(ELIGIBLE BUSINESS) HAVING TURNOVER OF LESS THAN 60 LAKHS CLAIM LOSS WITH OUT TAX AUDIT U/SEC 44AB .SUB SECTION (5)OF 44AD READ AS FOLLOWS.

NOTWITHSTANDING ANYTHINGCONTAINED 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 AUITED AND FURNISH A REPORT OF SUCH AUDIT AS REQUIRED UNDER SECTION 44AB.

Replies (3)

Sudhanshu Prajapati

Article

981 Points Joined September 2009

thanks for sharing

Anil Kumar Reddy

CA-Final

280 Points Joined August 2010

if the assessee is retailer, then audit is compulsory. otherwise i dont know. pls somebody ans

Priteshkumar N.Rathod

Chartered Accountants

46 Points Joined December 2008

If anybody want to show profit lower than 8% and total income is more than maximum amount which is not chargeable to tax then audit is compulsory u/s.44AD

Suppose turnove of a is 50 lacs and its profit is 2 lacs , then as the presumptive profit should be at least 4 lacs i.e. 8% of 50 lacs (first part)

as its profit is 2 lacs i.e.more than maximum amount which is not chargeable to tax

and hence tax audit is compulsory