Ad-Free CAclubindia and Daily Updates on your mobile. Subscribe Now!

44AD Income

Amit Jain (Proprietor ) (533 Points)

04 July 2020

Turnover ₹ 100 Lakhs
Book Profit ₹ 4 Lakhs

Whether he has to audit his accounts or can show his income u/s 44ad i.e. 8% of Turnover (₹ 8,00,000/-)

Reply
Follow
Share

6 Replies

Sarthak Kumar Dash (Student) (225 Points)
Replied 04 July 2020

If he is showing an income of 4 lakh then he has to maintain his books of account and get it audited for that AY. Moreover, he can't opt 44AD for the next 5 year and has tp follow 44AB if his income exceeds the taxable limit.

1 Like

Upgrade to CAclubindia Pro. Subscribe Now!

Amit Jain (Proprietor ) (533 Points)
Replied 04 July 2020

Whether he can show income u/s 44AD i.e. ₹ 8,00,000/- ( 8% of 1,00,00,000/-)

Sarthak Kumar Dash (Student) (225 Points)
Replied 04 July 2020

Yes he can.
And for the transactions through electronic mode he can choose 6% instead of 8%. So you may calculate accordingly.

Amit Jain (Proprietor ) (533 Points)
Replied 04 July 2020

It will not create any problem since his book profit is ₹ 4 Lac

Sarthak Kumar Dash (Student) (225 Points)
Replied 04 July 2020

Nope. You're showing more income than actual. So IT authority has no problem with that. Plus the turnover limits are with in 44AD, so no problem for opting 44AD