First year turnover 1.5 Cr and section 44ad opted.
next year Turnover above 3 Cr.
Now section 44ad not applicable.
assume that my cash receipts and cash payment below 5%..
my question.. 1) once you opt section 44ad, you have to choose the same for next 5 year.. but in my case turnover is above 2 cr and now not applicable.. what are the implications..
2) 6% or 8% rule still applicable??
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Section 44AD - Query
Replies (5)
Quick Summary
As you are saying us to assume your cash receipts and payments less than 5%. tax audit wont be applicable and you can go with normal return.
if you move out of 44AD due to applicability of other sections then the condition for 5yrs won't be applicable.
in this case you can and come to 44AD but no violation.
if you move out of 44AD due to applicability of other sections then the condition for 5yrs won't be applicable.
in this case you can and come to 44AD but no violation.
No, as turnover is 3 crores rupees 44AD is not applicable
Tax audit is also not applicable
Tax audit is also not applicable
Assessee has to maintains books of accounts u/s 44AA & gets the same audited u/s 44AB. He will not be eligible to claim the benefits of section of 44AD for next 5 AY.
If turnover / gross receipts realized by account payee cheque/DD/Electronic payment through bank account or any other electronic means , then 6%. otherwise 8%
If turnover / gross receipts realized by account payee cheque/DD/Electronic payment through bank account or any other electronic means , then 6%. otherwise 8%
1) Once opted for 44AD, there is no compulsion to continue with the same for 5 years instead when opted out, for next 5 years 44AD cannot be opted again
2) 6 or 8% profit provisions are not applicable and you need to declare actual profits
3) As cash transactions are within the specified limit, no tax audit is applicable.
Now audit under 44ab has to be done
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