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tax audit for presumptive income 44AD

ankit (student) (68 Points)

28 August 2019

hi
is tax audit manadatory for assessee following presumptive income under 44ad turnover 1.12 cr. profit shown at 6%

thanks

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6 Replies

Kapadia Pravin (17259 Points)
Replied 28 August 2019

No tax audit as turnover limit is upto 2 crore .
As per your query profit shown is 6%. However please note that minimum is 6%. if actual is more then declare that amount. Assuming that your total turnover 1.12 Crore is in cheque or digital mode.

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ankit (student) (68 Points)
Replied 28 August 2019

my whole turnover is digital mode. and accordingly I calculated 6%.
as per 44ad I am not required to maintain books. then how will I know my actual profit. whether it is higher than 6% or not.

Kapadia Pravin (17259 Points)
Replied 28 August 2019

You only know your business average profit margin. You are free to show more than 6%. No compulsion.

ankit (student) (68 Points)
Replied 28 August 2019

At year end I feel that maybe my profit is 10%. so if I to have to mandatorily show 10% profit?
from the start of year I didn't maintain books. I didn't keep of purchase and expense. with 10% profit shown and turnover under 2 cr. then how can I get tax audit done with no records maintained

Shivam RC (Student) (23683 Points)
Replied 28 August 2019

TAX AUDIT u/s 44AB of the Income Tax Act 1961 is not applicable for persons opted for PRESUMPTIVE TAXATION SCHEME of Section 44AD of the Income Tax Act 1961.