Sec.44AD and audit U/s 44AB, Income Tax

[HIMANSHU JARIWALA]

Dear All

Please calrify following issue

Mr. A is Manufacturer or trader or any bussiness other then plying of goods vehical . His T.O for the Year ended 31/03/2011 comes to Rs.45 Lacs. Only because his T.O. is bellow Rs. 60 Lacs Section 44AD is applicable? If  his net profit is below 8% of his T.O. of Rs. 45 Lacs, he required to get his accouts audited by CA? Is Section 44AD is optional or mendatory?

Please reply.

regards

Posts / Replies

[CA Rachit Agarwal]

1. 44AD is optional only in case where the audit is carried out by CA. It is mandatory if the assessee TO less than Rs. 60 lacs and assessee do no wish to get his accounts audited.