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Doubt in 44ad

Aditi (Articles) (169 Points)

24 May 2019

In AY 18-19 i opted for presumptive taxation because my turnover was between one crore and two crores. For AY 19-20 my turnover is below one crore. Can i file normal return by not adopting 44AD even though my profit is less than 8%?

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3 Replies

Fareeha Jabeen (Articled Assistant) (160 Points)
Replied 24 May 2019

I think you can! You only need to be careful when you're declaring income u/s 44AD when the profit is less than 8%. Hope this helps!

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A B Kundu (Professional) (1422 Points)
Replied 24 May 2019

Yes you can withdraw the presumptive taxation scheme and file normal return with the following consequences:

1) You have to keep proper books of accounts u/s 44AA.

2) For next 5 years you will not be eligible to opt for Sec.44AD.

3) If turnover exceeds Rs.1 Crore, according to sec.44AB tax audit has to be done.

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Manish (Student) (190 Points)
Replied 24 May 2019

no if you once opted presumptive taxation scheme you will have to declare 8% of turnover ....
however if you claiming your profit is less than as per presumptive scheme then you will have to get audited your books of account under section 44AB...
here is a exception of above provision ----i.e..
if the assessee's turnover is less then or upto 250000 than he need not get audited their book of account.......as much as you will declare turnover shall be consider as chargeable income ... on which tax shall be levied...