Section 44ad

This query is : Resolved

Guest

Guest (Querist)

18 June 2017 Dear members, as we know that a person is barred for next five years from using 44AD if he discontinues it.
What if the business is new and eligible assessee, but wants to declare less than deemed profit? I think that subsection 4 won't be applicable then. Am I right? If yes, then what would happen under this and other sections like 44AA & 44AB?

And for other business, what would happen after end of five year of disqualification?

Guest

Guest (Querist)

18 June 2017 For example, the business is new and having turnover of around 50 lac and a profit of less than 8%. Then which provision will be applicable and what about tax audit and under which subsection?