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
Section 44AD: Audit Requirement for Businesses with Turnover Below Rs. 60 Lakhs if Profit Under 8% A query was raised regarding the applicability of Section 44AD of the Income Tax Act for a business with a turnover of Rs. 45 lakhs, questioning whether an audit is required if the net profit is below 8% of the turnover. The response clarified that Section 44AD is optional if a Chartered Accountant conducts the audit. However, it becomes mandatory for businesses with a turnover below Rs. 60 lakhs if they choose not to have their accounts audited. (AI Summary)
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