section 44ad and lower 8% profit declared and no taxable income , no require tax audit

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sunilpali

OPERATION HEAD(TAX AND AUDIT)

129 Points Joined May 2010

dear all

section 44ad me highlight word ka kya meaning hai. pls send kare

( kuch logo ka manna hai ki agar declare profit taxable nahi hai or profit 8% ke under hai to audit nahi karani hai.

kya ye sahi hai, i.e. turnover receipts is 55 lacs, and declared profit 1.45 lacs (male assessee) hai to audit nahi karani hai , kya ye sahi hai.

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.

pls urgently answar de

thanks

Replies (4)

Guest

1) if gross receipt\turnover is >60L sec.44 AB will attract.

2) if gross receipt\tournover is<60L Sec 44 AD will attract.

in the above 2nd case :- INCOME OT SUCH BUSINESS IS CLCULATED ON PRESUMPTIVE BASIS AS FOLLOW;

---- 8% GROSS RECEIPTS XXXXX

LESS:- DEDUCTION FOR REMUNERATION AND INTEREST PAID TO - XXX

PARTNER SUBJECT TO LIMIT U/S 40 (b)

BALANCE TAXABLE INCOME FROM BUSINESS XXXXX

NOTE: 1) Deduction u/s 30 to 37 shall not be allowed

2) the assessee is not required to maintain any books and get it audited

3)the assessee my delcare an income which is higher than the above amount

4) if the assessee claims that his income is less then the above amt. then tax will be charged on such lower amt. provided the assessee maintains books of accounts and gets it audited.

Sathya Sankeerth K N

Chartered Accountant

429 Points Joined May 2011

Dear Ganesh,

I didn't get ur 3 rd and 4th point in the note, can u pls elaborate on the same

Mohammad Asif

chartered accountant

191 Points Joined February 2010

total income exceeds the maximum amount which is not chargeable to income-tax,

it means the limit of 160000,190000,240000, for male below 65 years,female below 65 years,female and male with 65 years or more age.

suppose my receipts from profession is Rs.1400000 and i have declared income on presumtive basis @ 5% i.e 70000 i am far below than the maximum exemption limit i.e 160000(I am a male 18 years age.) i would not have to go through tax audit even i have declared income lower than 8%