Hai Friends, I have a doubt regarding Itr filing.
*Provision:-As per sec 44AD if assessee filed ITR choosing 44AD then it has to be followed for 5 years and if in any of these 5 years ITR filed not in accordance with 44AD and the net income of that year is >2,50,000 then assessee has to maintain books of accounts and get them audit u/s.44AB and assessee can't choose sec 44AD for next 5 years.*
1. 1st year ITR was filed under Sec 44AD for F&O
2. 2nd year ITR was filed under regular books of accounts as the Turnover of F&O crosses 2Cr becoming ineligible to file under sec 44AD and the net income of that year is less than 2,50,000.
3. Luckily in 2nd year net income is <2,50,000 so there is no point of tax audit eventhough ITR was filed not in accordance with 44AD.
4. Now, the current year net income exceeds 2,50,000 so do current year assessee has to get tax audit or not?
Yes, only if you do not declare minimum 6% profit margin.
CAclubindia
