As per Section 44AD(4) amended vide Finance Act , 2017 where an eligible assessee who declares profits of any previous year in accordance with Section 44AD(1) i.e. a sum equal to eight per cent or six percent, as the case may be of the total turnover or gross receipts of the assessee in the previous year on account of such business shall be deemed to be the profits and gains of such business chargeable to tax under the head "Profits and gains of business or profession" then he must have to declare profit of next 5 assessment year succeeding such previous year in accordance with section 44AD(1). If he declares his profits and gains lower than the prescirbed limit then he is required to get his accounts audited under section 44AB(e) provided his total income exceeds the maximum amount not chargeable to tax.
CAclubindia
