if income is lower than taxable income and profit declared u/s 44ad is lower than 8 % . is tax audit req.
my view is that audit is not req.
plz explain if adverse view
Pawan Singhal (chartered accountant) (655 Points)
09 March 2011if income is lower than taxable income and profit declared u/s 44ad is lower than 8 % . is tax audit req.
my view is that audit is not req.
plz explain if adverse view
U S Sharma
(glidor@gmail.com)
(21063 Points)
Replied 10 March 2011
Applicable to an assessee engaged in the business of civil construction or supply of labour for civil construction and having gross receipts paid or payable not exceeding an amount of Rs 40 lakh.
Civil construction includes:
1. The construction or repair of any building, bridge, dam or other structure or of any canal or road;
2. The execution of any works contract.
8% of the gross receipts paid or payable to the assessee in the previous year on account of such business�Deemed Income,
OR
A sum declared by the assessee in his return of income,
whichever is higher, 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 notwithstanding anything to the contrary contained in sections 28 to 43C.
An assessee may claim lower profits and gains than the profits and gains if he keeps and maintains such books of account and other documents as required by section 44AA and gets his accounts audited and furnishes a report of such audit as required under section 44AB.
Mohammad Asif
(chartered accountant)
(191 Points)
Replied 26 March 2011
Yes, if profit declared U/s 44AD is lower than 8% The assesse will be required to maintain books of account under section 44AA and get his account audited .
Arun Gupta
(162 Points)
Replied 11 April 2011
I am completely agree with pawan singhal, in my view audit is not required
shivam
(3354)
(319 Points)
Replied 11 April 2011
to mr u s sharma, i think that sectio 44ad is amended to cover all the businesses from ay 11-12
kcagarwal
(chartered accountant)
(103 Points)
Replied 10 May 2011
MY DEAR MEMBER,
My view is that if the profit after calculating 8% does not come in the perview of
taxable income, then the tax audit is not required under section 44 A D
C A K C AGARWAL -- ALLAHABAD
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