QUESTION:
Whether Books of Accounts is to be Audited if the percentage of profit shown less than 8% of the turnover but the Income is less than exemption limit.
Whether Books of Accounts is to be Audited if the percentage of profit shown less than 8% of the turnover but the Income is less than exemption limit.
ANSWER:
Hi,
You are not required to get your books of accounts audited even if you show less than 8% profit, if your total income is less than the amount not taxable under Income Tax Act, 1961.
The above statement can be verified by the Provison under Section 44AD which says that:
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.
The above line, "whose total income exceeds the maximum amount which
is not chargeable to income-tax", makes it clear that you have to get accounts audited only if your income exceeds maximum amount not chargeable to tax.
Hope this will solve your query, for further query please feel free to comment.
So as u said we can show profit less than 8% .
ReplyDeleteMy question is can we show profit less than 8% under section 44 AD
No you cannot show profit less than 8% under section 44AD, this section only allows to show profit 8% or above. You will have to show normal PGBP Income and can claim non audit clause if your income is below taxable limit.
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