Thanks wisp for posting the links for the net.
But you will be shocked to see that 2 CA's hold 2 different view when they have read the same book,same syllabus designed by ICAI.
So as per CA 1-Audit is required
as per CA 2-No audit required
How would you will decide the fact then?We are not CA,right?
If you try to dig deep a CA,I noticed he feels very bad and reply in very bad tone like-
I'm CA,I know my job,you dont try to be CA etc.I have faced such situation.
so far I have changed 6 CA.Now I have only 2 CA.
I pay 5k and pay my return.
My take on this as a non-CA non-Accountant
Take it for what it is worth...
The following Clause :
http://www.incometaxindia.gov.in/Pages/i-am/firm.aspx?k=Heads of Income
(5) 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.
comes under
Special provision for computing profits and gains of business on presumptive basis.
Therefore I think they are talking about income under this head " Profit and Gains from Business" that is if the <8% profit exceeds the taxation limit, then account has to be audited , i.e., if there is substantial profit then even if it is less than 8% of turnover, it has to be audited. I think may be that is the interpretation this site is using
http://tdsmaster.com/presumptive-taxation-section-44-ad-income-on-estimated-basis.html
Looks like tdsmaster.com is correct:
Example from incometax site
http://www.incometaxindia.gov.in/Tutorials/Section-44AD-Theory.pdf
Declaration of lower income
If the actual income from the business covered under section 44AD is lower than the income
prescribed under the presumptive scheme, then the assessee can declare income from aforesaid
business at a lower rate (i.e., at less than 8%).
If the assessee does so,
i.e.,
declares lower income and his actual income exceeds the maximum
amount which is not chargeable to tax, then the relief from maintenance of books of account is
not available and he is required to maintain the books of account as per section 44AA and
further, he has to get such books of account audited as per section 44AB.
Illustration
Mr. Sashank is running a stationary mart. The turnover of the business during the previous year
2012
-13
is Rs. 84,48,252. His actual income from this business is only Rs. 5,52,848 which is
less than Rs. 6,75,860 (i.e., Rs. 84,48,252 * 8%). In this case can he declare actual income
which is lower than the limit prescribed under section 44AD?
**
As per the provisions of section 44AD, if the actual income from the business covered under
section 44AD is lower than the income prescribed under the presumptive scheme, then the
assessee can declare income from aforesaid business at a lower rate (i.e., at less than 8%).
Thus, in this case Mr. Sashank can declare lower income. However, in this case he has to
maintain the books of account prescribed under section 44AA and has to get such books of
account audited, since in this case his actual income exceeds the exemption limit (
i.e.,
Rs.
2,00,000).
I think this is about income under this particular head, i.e. profit and gains from business, nothing to do with other heads of income. Even each separated business seems to be treated separately. I think this puzzle is finally solved for me :
Illustration
Mr. Sipahi is running a medical store. The turnover of the business during the previous year 2012
-13 is Rs. 25,84,252 and he declared income as per the provisions of section 44AD. In this case will he be liable to maintain the books of account in respect of aforesaid business?
**
As per the provisions of section 44AD, an assessee who adopts the provisions of section 44AD,
is not required to maintain books of account as per section 44AA. However, the relief is
available only in respect of business covered by the provisions of section 44AD and not in
respect of any other business. Thus, if Mr. Sipahi owns any other business, then in respect of
such other business the provisions of section 44AA in respect of maintenance of books of
account will apply.
http://www.incometaxindia.gov.in/Tutorials/Section-44AD-Theory.pdf