Whether I am required to get my books audited?? if my net profit is below 8% and I m not opting for sec. 44AD and showing my income in business and profession head.
My turnover is below 1cr. and upto last year my books are audited.
11 Replies
CA Bhavik Soni
(867 Points)
Replied 24 August 2018
yes, based on the information given by you, you are liable for tax audit u/s 44AB (e)
Gaurav Palta
(484 Points)
Replied 24 August 2018
In case previous year you have opted Section 44AD and in current year you want to declare profit less than 8% and Total income is exceeding amount not chargeable to tax tax audit is applicable.Otherwise if you have not opted Section 44 AD in previous year tax audit is not applicable in ur case.
Gaurav Palta
(484 Points)
Replied 25 August 2018
Not mandatory if last year 44AD was not opted and current year turnover is below 1 cr. If 44AD was adopted last year and current year income exceeds minimum amount not chargeable to tax audit applicable.
Gaurav Palta
(484 Points)
Replied 25 August 2018
please quote the relevant section for clearing the doubts.
rama krishnan
(12244 Points)
Replied 25 August 2018
53[Provided that this section shall not apply to the person, who declares profits and gains for the previous year in accordance with the provisions of sub-section [1] of section 44AD and his total sales, turnover or gross receipts, as the case may be, in business does not exceed two crore rupees in such previous year:]
proviso inserted w.e.f. 01/04/17..
above proviso transpires if an eligible assessee who opt for 44ad(1) and whose turnover below 2 crores, section 44ab will not applicable... on the contrary, if the assessee whose turnover below 2 crores and doesn't opt for 44ad, 44ab will applicable
proviso inserted w.e.f. 01/04/17..
above proviso transpires if an eligible assessee who opt for 44ad(1) and whose turnover below 2 crores, section 44ab will not applicable... on the contrary, if the assessee whose turnover below 2 crores and doesn't opt for 44ad, 44ab will applicable
Gaurav Palta
(484 Points)
Replied 25 August 2018
Thanks sir for ur input.There is lot of confusion on this and still how does this apply to turnover below 1 cr and to a person who has not touched 44AD in previous year.
rama krishnan
(12244 Points)
Replied 25 August 2018
section 44ad(4) came in to effect from 01/04/2017 i.e. that is from a.y. 2017-18. so one who did not opt for 44ad in a.y. 2017-18, cannot opt for 44ad till 2022-23
Gaurav Palta
(484 Points)
Replied 25 August 2018
i still need answer to my question. section 44 ad(4) puts restrictions on the person who was there in 44AD earlier and now wants to exit and he wont get any benefits of 44AD for 5 years.A person who has never used 44AD and there is a business loss in current year and turnover less than 1 cr with no relation to 44AD. After F.act 2016 how do we see to it.....
FAHEEM AKRAM
(293 Points)
Replied 29 August 2018
if previous year tax audit but this year turnover below 1 crore and profit is 4% so what to do for this year?
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