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%?
Aditi (Articles) (169 Points)
24 May 2019In 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%?
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!
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.
Manish
(Student)
(190 Points)
Replied 24 May 2019
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