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Income tax audit 44 ad

Manoj Gonarkar (Accountant) (125 Points)

10 August 2021

I have filed return 44 ad presumtive scheme ( itr 4 ) from 2017/18, 2018/19 and 2019/20, and I have filed normal return ( itr 3) 2020/21 , I did not audit 2020/21, now can I file normal return or I have to do audit? turnover is 8000000. and profit is less than 250000 (2021/22)

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3 Replies

CA. Sourav Sarkar (Chartered Accountant ) (24578 Points)
Replied 10 August 2021

Yes Tax audit is required

Samantha J (1236 Points)
Replied 11 August 2021

1.File normal return as you didn't get audit done as profit is less than 6%.File presumptive income-tax showing 6%profit and pay tax on that profit. That's the way to avoid audit.

CMA Poornima Madhava (CMA) (13097 Points)
Replied 11 August 2021

If you had voluntarily opted out of 44ad during ay 20-21, then you cannot opt for 44ad for 5 years. Hence, ITR 3 would be appropriate and no tax audit required because the turnover is within the threshold limit.

If you had filed ITR 3 for ay 20-21 because you were not eligible for it due to exceeding threshold limit, then you may opt for 44ad for ay 21-22. Even in this case, no tax audit because the income is within the basic exemption limit (assuming no other income).