1. As per me, It seems i have exited 44AD in FY 20-21 after using it for many years and reentered it in FY 22-23. Now as per 44AD, i have to use to compulsorily for next 5 Years means FY 22-23 to FY 26-27. I want to declare profit less than 6% for shares F&O for FY 23-24. If i do so, i will have to maintain books under 44AA and audit under 44AB? (Turnover is Rs. 26 L and Profit is Rs. 36000)
2. If I opt for 44AD for FY 23-24 also and declare profit at 6%, then I can opt out of 44AD only in FY 27-28?
3. The years where there is no business income to report will be counted for the counting in 5 Years for maintaining 44AD?
Reframing my understanding, as I re opted for 44AD in FY 22-23, I need to maintain 44AD for 5 Years including FY 22-23; means FY 22-23 to FY 26-27. Also, I can opt out from 44AD for FY 27-28 without any punishment.
1. If I opt out of 44AD for FY 23-24, I will not be allowed to take 44AD for 5 subsequent years. Means, from FY 23-24 to FY 28-29. I can opt back to 44AD for FY 29-30 only.
2. If I opt out of 44AD for FY 23-24, I have to get my books maintained and audited for FY 23-24 at any condition of turnover or profit?
3. If I opt out of 44AD for FY 23-24, is it a compulsion to get audited every year for the next 5 years if I have even the slightest of business income, or will the general audit rules start to apply ?
4. If I opt out of 44AD for FY 23-24, and do not have, say any business income in FY 24-25, do I need to still get audited and maintain accounts ? Also, will this FY 24-25 be counted as a year for which 44AD is not available as punishment as I have opted out of it in FY 23-24 ?
14 July 2024
1. to 3 correct, but add one more years, it is five years after the year of opting out. 4. No business no question of books or audit. Yes it is counted as usual year of punishment.
14 July 2024
1. If I opt out of 44AD in FY 23-24 I will get accounts maintained and audited. Compulsory Audit now for next 5 years also. Say in FY 24-25, I have salary income, long and short term capital Gain and share dividend income. So if this dividend income is shown in Income from other sources, can I skip compulsory audit as punishment and file ITR 2?
2. If I opt out of 44AD in FY 23-24 I will get accounts maintained and audited. Compulsory Audit now for next 5 years also. Say in FY 24-25, I have salary income, long and short term capital Gain and profit for being a partner in partnership firm. As this profit is already taxed in partnership firm it will be exempt in my hands and shown in Schedule IF. I have to file ITR 3 by can I skip compulsory audit punishment?
3. If I opt out of 44AD in FY 23-24 I will get accounts maintained and audited. Compulsory Audit now for next 5 years also. Say in FY 24-25, I have salary income, long and short term capital Gain and renumeration for being a partner in partnership firm. As this renumeration is taken as expense in partnership firm it will be taxable in my hands. I have to file ITR 3 and hence have to go for compulsory audit?
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