44AD applicablility of audit ?

Net profit before interest and remuneration is considered for the purpose of 44AD

if net profit before remuneration and interest is 3 lakhs then ?

Actually this is something which I wanted to discuss. In my opinion it doesn't apply still. Because subsection 4 of 44AD

doesn't apply in this case.

o ya same view but all practicing firm are doing audit in this situation so ...

new amendment has proposed to omit the proviso to section 44AD(2) and accordingly, in case of eligible assessee being a firm, the salary and interest paid to its partners shall not be allowed to be deducted from the income computed under sub-section (1) of section 44AD.

hence turnover of 90lacs attracts minimum 8% or 6% profit i.e. 720000 (8%in case) and thus tax ll be on this 7.2 lacs or else if u r showing less than 8% or 6% then audit is compulsory to be done.

@ sanny vora. I don't know why audit is conducted.

Hi Sanny. Do you still have this opinion now. Actually I forgot why I made this opinion. I called IT department and they also confirmed our opinion. But I cannot remember my interpretation why we were discussing 2 months ago and feels like audit is applicable in this case.