Incometaxfile
This query is : Resolved
14 November 2018
Sir , I had my file my IT return during FY 16-17 under SEC 44AD ( presumptive income )
but now during FY 2017-18 in want to opt out of SEC 44AD . Sir ,my Income is 275650/ for FY 2017-18 and income is above 8% of turnover . Can I file ITR 3. Whether audit required to do for FY 2017-18 by CA.
Plz advice
but now during FY 2017-18 in want to opt out of SEC 44AD . Sir ,my Income is 275650/ for FY 2017-18 and income is above 8% of turnover . Can I file ITR 3. Whether audit required to do for FY 2017-18 by CA.
Plz advice
14 November 2018
The relevant provisions of Section 44AD read as under:
"...........................................................[(4) Where an eligible assessee declares profit for any previous year in accordance with the provisions of this section and he declares profit for any of the five assessment years relevant to the previous year succeeding such previous year not in accordance with the provisions of sub-section (1), he shall not be eligible to claim the benefit of the provisions of this section for five assessment years subsequent to the assessment year relevant to the previous year in which the profit has not been declared in accordance with the provisions of sub-section (1).
(5) Notwithstanding anything contained in the foregoing provisions of this section, an eligible assessee to whom the provisions of sub-section (4) are applicable 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.]
................................................................."
Therefore, if an assessee opts out of the scheme of Presumptive Taxation u/s 44AD then he cannot claim the scheme benefit for the next 5 years. Further he will also be required to get his accounts audited by a Chartered Accountant.
Thus, for the FY 17-18 if you want to opt out of the scheme then you should get your accounts audited by a CA.
"...........................................................[(4) Where an eligible assessee declares profit for any previous year in accordance with the provisions of this section and he declares profit for any of the five assessment years relevant to the previous year succeeding such previous year not in accordance with the provisions of sub-section (1), he shall not be eligible to claim the benefit of the provisions of this section for five assessment years subsequent to the assessment year relevant to the previous year in which the profit has not been declared in accordance with the provisions of sub-section (1).
(5) Notwithstanding anything contained in the foregoing provisions of this section, an eligible assessee to whom the provisions of sub-section (4) are applicable 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.]
................................................................."
Therefore, if an assessee opts out of the scheme of Presumptive Taxation u/s 44AD then he cannot claim the scheme benefit for the next 5 years. Further he will also be required to get his accounts audited by a Chartered Accountant.
Thus, for the FY 17-18 if you want to opt out of the scheme then you should get your accounts audited by a CA.
14 November 2018
Mam
If my income after deduction u/s 80C is below exemption limit i.e 275650 less 26600 LIC= Net total income RS 249050 , then also whether audit required to do.
If my income after deduction u/s 80C is below exemption limit i.e 275650 less 26600 LIC= Net total income RS 249050 , then also whether audit required to do.
21 November 2018
no. in such case audit is not required.
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