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44AD Audit

Jitendra Singh Kachchhawah (Salaried) (78 Points)

19 September 2019

One query.....

Is 44AD override all prov of act.ie is 44 AD is by default applicable.
One assessee has turnover of 80 lakhs and he suffered loss. Is he liable to get his accounts audited??
Cannt he file normal return???

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RAJA P M ("Do the Right Thing...!!!") (128056 Points)
Replied 19 September 2019

Originally posted by : Jitendra Singh Kachchhawah
	One query.....Is 44AD override all prov of act.ie is 44 AD is by default applicable.One assessee has turnover of 80 lakhs and he suffered loss. Is he liable to get his accounts audited?? Cannt he file normal return???

May be Yes....

Asseessee means....?

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Suresh Thiyagarajan (Student) (3986 Points)
Replied 19 September 2019

1. Sec 44AD talks about presumptive taxation. It is available only to the eligible assessee. Make sure in your case the assessee is an eligible assessee.
2. Sec 44AD is not applicable by default. It is an option available to the assessee. Eligible assessee having a T.O of less than Rs. 2 crores during the year can opt for this section and pay tax at 8% or 6%.
3. If the T.O is less than Rs. 1 crore then audit u/s 44AB will not be applicable. Criteria for determining the audit u/s 44AB is T.O and not profit or loss.
4. In your case, if the assessee is carrying on business tax audit u/s 44AB will not be applicable as his T.O is less than Rs. 1 crore. Make sure he is not covered u/s 44AD(4).
Please correct me if the above solution has an alternative view.

Kapadia Pravin (17259 Points)
Replied 20 September 2019

@ Jitendra Singh

He can surely file normal return that is ITR 3

The last for non-audit cases filing date was 31-8-2019. I hope you must have filed return.

if not filed then you lose the right to carry forward business loss

Jitendra Singh Kachchhawah (Salaried) (78 Points)
Replied 20 September 2019

Sir kindly explain 44 AD(4)

Kapadia Pravin (17259 Points)
Replied 20 September 2019

@ Jitendra Singh
44AD (4)

“(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).