If business turnover is less than 1 crore and the assesee declares profit less than 8 percent can he do so without getting books of account audited..
if yes then can the department arise question regarding genuineness of such income declarations?
4 Replies
MUHAMMED MOINUDDIN
(100 Points)
Replied 17 May 2019
No, if the assesee has not opted for presumptive taxation scheme in such cases declaring profits less then 8% will make Tax audit mandatory
SUMIT GOYAL
(43 Points)
Replied 17 May 2019
but the limit for tax audit report is more than 1 crore..plz explain
MUHAMMED MOINUDDIN
(100 Points)
Replied 17 May 2019
according to sec 44ad if the assesee's
1) Turnover is below 2cr in that case person can declare income of 8% on income from cash transaction and 6% in case of income from digital transaction
2) opting for 44ad in that case no Tax audit
Ans- limit also includes 1cr i.e from 0 to 2cr
3) you are getting confused between 44ab and 44ad
44ab is tax audit if turnover exceeds 1 cr but if you opt for 44ad then no audit
Hope you understand
1) Turnover is below 2cr in that case person can declare income of 8% on income from cash transaction and 6% in case of income from digital transaction
2) opting for 44ad in that case no Tax audit
Ans- limit also includes 1cr i.e from 0 to 2cr
3) you are getting confused between 44ab and 44ad
44ab is tax audit if turnover exceeds 1 cr but if you opt for 44ad then no audit
Hope you understand
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