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Sec 44ad digital mode

srikumar (audit staff) (1203 Points)

26 November 2019

sir my client bank statement has credited by way of cash deposit by some party's , total cash deposit credit, cheque, neft has totally around RS. 79 lakhs fy 18-19. can I use 44ad @ 6 percent ?
cash deposit by some partys are allowed to use 44ad 6 percent?
pls guide sir

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7 Replies

RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 26 November 2019

No... Cash deposit is not a digitally receipt...

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Debiprasad Jana (295 Points)
Replied 26 November 2019

Yes. you can.
do one thing.
1. make a total of deposited amount by way of cheque, neft or some digital mode and show them @ 6%.
2. in the case of cash deposit you can show them @ 8%.
enjoy the life😄

srikumar (audit staff) (1203 Points)
Replied 26 November 2019

Suppose out of 79 lakhs, 43 lakhs are only neft, cheque so use 44ad 6 percent ?

RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 26 November 2019

Yes... You can seggregate the deposits as Cash and Other than Cash.
After that Calculate 6 percentage to Other than cash mode
&
8 percent to Cash Mode...

srikumar (audit staff) (1203 Points)
Replied 26 November 2019

Ok sir thank you very much

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RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 26 November 2019

You are most welcome

Kapadia Pravin (17259 Points)
Replied 26 November 2019

44AD does not mean simply 6% or 8%

44AD requires that 6 or 8% as minimum profit to be declared or actual profit whichever is higher.

So do not exactly stick to that %age level.

If in reality it is more, then go for that profit figure.

Segregation is must as that break up of turnover is required to be filled in ITR.