Posted 2 days ago

Name Email Subject

Shafaf CA Final (New) Article Assistant [ Scorecard : 165]

Message

Please explain Section 44 AD ..is it mandatory?My doubt is if my turnover is below 60 lacs and i declare a profit more than 8% without opting 44AD ie,with a balance sheet and a P/L.Whether my business is liable to audit u/s 44AB?

Posted 2 days ago

ABHISEK TOSNIWAL CA in Practice [ Scorecard : 82]

When you opt for 44AD i.e. in case your turnover is below 60 lacs and you show a profit more than 8%, then you don't need to have your accounts audited. But in case you show your profit less than 8% of your turnover then you need to have your accounts audited. Regards Abhisek Tosniwal

Posted 2 days ago

in this case you r not eligible for audit

future ca taxation deptt. [ Scorecard : 3508]

Posted 2 days ago

nett profit more than 8% and sale is less than 60 lakh than 44ab not applicable

future ca taxation deptt. [ Scorecard : 3508]

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Posted 2 days ago

Dhanya nil [ Scorecard : 47]

An assessee with turnover below Rs. 60 lakhs, who shows an income below the presumptive rate prescribed under the provisions of Sec 44AD, in case his total income exceeds the taxable limit, required to maintain books of accounts and also get them audited by a CA. So in your case if you wish to show a profit below 8% of turnover you have to maintain accounts as per 44AA and get them audited under 44AB. So I feel that,for small business firms, its better to opt persumptive taxation than maintaining a long list of books of accounts and spending a good sum as Audit Fee.Moreover an assessee opting for 44AD is exempt from paying advance tax. So go for 44AD.............

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Posted 2 days ago

Vaishali Bopardikar CA final student [ Scorecard : 87]

If in dis case assesse is maintaining books and preparing B/S n P/L regularly , can AO makes him mandatory to audit the books and show the true profit and not 8%???

Posted 2 days ago

Originally posted by : Dhanya An assessee with turnover below Rs. 60 lakhs, who shows an income below the presumptive rate prescribed under the provisions of Sec 44AD, in case his total income exceeds the taxable limit, required to maintain books of accounts and also get them audited by a CA. So in your case if you wish to show a profit below 8% of turnover you have to maintain accounts as per 44AA and get them audited under 44AB.

DS Chauhan CA Final, Persuing M. Com (DU) [ Scorecard : 627]

So I feel that,for small business firms, its better to opt persumptive taxation than maintaining a long list of books of accounts and spending a good sum as Audit Fee.Moreover an assessee opting for 44AD is exempt from paying advance tax. So go for 44AD.............

srry Dhanya .... but as per safaf he is declaring profit more than 8% not less than

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Posted 2 days ago

Originally posted by : future ca nett profit more than 8% and sale is less than 60 lakh than 44ab not applicable
DS Chauhan CA Final, Persuing M. Com (DU) [ Scorecard : 627]

Posted 2 days ago

agree with above experts

ca/cs student audit deptt. [ Scorecard : 80]

Posted 2 days ago

Dhanya nil [ Scorecard : 47]

@ D.S.Chauhan............I just mentioned my opinion abt why one should go for 44AD rather than declaring profit more than 8% of turnover.I didn't dealt with Safaf's question in particular because it was already answered by Abhishek and others. Sorry if my answer was an inappropriate one n this context.