2.25 CRORE TRADER, NO CASH TRANSACTIONS,3CD APPLICABLE?

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This discussion examines whether Section 3CD is applicable to an individual trader with ₹2.25 crore in sales and no cash transactions. The consensus suggests it is applicable because the net profit margin is below the 6% threshold, especially with the increased limit to ₹3 crore. However, if a minimum of 6% profit is declared, a tax audit can be avoided, though Section 44AD is optional and the tax audit limit is ₹10 crore.

Kunjan

Kunjan (Querist)

21 August 2025 individual trader havin 2.25 crore sales, no cash transactions.
is 3cd applicable? 3% is net profit margin

my view--> yes, as net profit margin is less than 6% and limit is increased to 3 crore.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

21 August 2025 Correct.... But If minimum profit declared 6%, tax audit can be avoided.

Kunjan

Kunjan (Querist)

21 August 2025 ok but another view ,,,
i understand 44ad is optionsl. If individual does not want to show 6% its fine (as tax audit limit is 10 crore).

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

21 August 2025 Yes, Correct...

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

22 September 2025 Good luck..

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