Breakage of 44ad
Page no : 2
CA Aakarsh Jain
(CA)
(10431 Points)
Replied 03 January 2022
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(177896 Points)
Replied 04 January 2022
I wonder why you want to invite audit liability for next five years, by opting out from Sec. 44AD in this year.
Audit is not mandatory for this year, but error may trigger IT query if future.
Even if you declare income at 6/8% of the turnover under sec. 44AD, the total income would be below 5 lakhs, as such tax liability after rebate will be Nil...
Jyoti Narang
(Kkk)
(1204 Points)
Replied 04 January 2022
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(177896 Points)
Replied 04 January 2022
Bank transactions can be declared at 6% margin.
Make them aware about tax audit liabilities to be faced for next 5 years.
Neha sharma
(-)
(1257 Points)
Replied 05 January 2022
This is what Section 44AD(4) has to say
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)
It clearly says that if a person opts out of provisions of this section, it would be mandatory for him to get his books audited for the next 5 years irrespective of whether the income is taxable or not.
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(177896 Points)
Replied 05 January 2022
Please read difference between sub sec. 44AD(4) & sec. 44AD(5)....
Liability of audit is specified u/s. 44AD(5)...
Aarti Maurya
(Student)
(3268 Points)
Replied 10 January 2022
As per sec 44AD of income tax act a sum equal to 8% or 6%(if gross receipts are from account payee cheque or electronic clearing system) of TOTAL GROSS RECEIPTS should be declared in his return of income and that shall be deemed to be the income.
debora M
(BUSINESS DEVELOPMENT MANAGER)
(1697 Points)
Replied 10 January 2022
Section 44AD(4) will attract the year when the assessee declares the profits less than 8% or 6%. The taxpayer will not be eligible to opt for a presumptive income scheme for the next five years
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