Become a Certified GST Practitioner with CA Arun Chhajer. Register Now!

Tax audit v presumptive taxation

Anitya (Accounts Manager) (82 Points)

12 October 2018

Hi members,

I have a query regarding tax audit and presumptive taxation. If one files ITR-4 in A.Y. 2018-19 with presumptive taxation (8% N.P. on Turnover), can he declare less Net Profit and go for Tax Audit in A.Y. 2019-20? Sales in AY 2018-19 are Rs. 45 lacs. and in AY 2019-20 it is expected to be more than Rs.1 crore. Thanks

Reply
Follow
Share

11 Replies

RAJA P M ("Do the Right Thing...!!!") (128085 Points)
Replied 12 October 2018

Originally posted by : Anitya
	Hi members, I have a query regarding tax audit and presumptive taxation. If one files ITR-4 in A.Y. 2018-19 with presumptive taxation (8% N.P. on Turnover), can he declare less Net Profit and go for Tax Audit in A.Y. 2019-20? Sales in AY 2018-19 are Rs. 45 lacs. and in AY 2019-20 it is expected to be more than Rs.1 crore. Thanks

Yes... He can as per Your query and continue next Five Years...

1 Like

Upgrade to CAclubindia Pro. Subscribe Now!

Anitya (Accounts Manager) (82 Points)
Replied 12 October 2018

Mr. Raja, please confirm Presumptive Taxation in AY 2018-19 and Tax Audit in AY 2019-20 and thereafter?

RAJA P M ("Do the Right Thing...!!!") (128085 Points)
Replied 12 October 2018

Originally posted by : Anitya
	Mr. Raja, please confirm Presumptive Taxation in AY 2018-19 and Tax Audit in AY 2019-20 and thereafter?

Next Five Year means under Tax Audit , not under Presumtive Scheme...

Anitya (Accounts Manager) (82 Points)
Replied 12 October 2018

In AY 2018-19 he can file with presumptive taxation.

From AY 2019-20 and next five years, he will be going for tax audit.

RAJA P M ("Do the Right Thing...!!!") (128085 Points)
Replied 12 October 2018

Originally posted by : Anitya
	In AY 2018-19 he can file with presumptive taxation. From AY 2019-20 and next five years, he will be going for tax audit.

Yes...

If A Taxpayer file ITR under Presumptive Tax Scheme in AY 2018-19. And he will/Fall under Tax Audit in AY 2019-20 then He will file His next five ITR under Tax Audit...

2 Like

Upgrade to CAclubindia Pro. Subscribe Now!

rama krishnan (12234 Points)
Replied 13 October 2018

I concur with Mr. Raja view

1 Like

Rohan Bagra (406 Points)
Replied 13 October 2018

if a person who is liable for tax audit and not eligible for Presumptive basis income then that assessee cannot avail benefit of presumptive income.

so in your case assessee can opt for tax audit but he will not be allowed to use benefit of presumptive income for next 5 years

Anitya (Accounts Manager) (82 Points)
Replied 13 October 2018

Thanks Rohan ji.

Can depreciation loss be carried forward if ITR is filed after due date (non audit).

Rohan Bagra (406 Points)
Replied 14 October 2018

Depreciation is allowed to be carry forward even if ROI is filed after due date but loss cannot be carry forward for the year for which ROI is filed after due date.

but in that case set off of loss brought forward from previous year will be allowed in the year of profit for which ROI is filed after due date.