44-ad concept

This query is : Resolved

TARIQUE RIZVI (Querist)
Follow

26 July 2019 If we choose 44-AD this year for ITR-5 for the Ay 19-20, whether we will have to continue 44-AD for the next five years i.e. upto Ay 23-24 ?

CA Darshan

CA Darshan (Expert)
Follow

26 July 2019 No its not mandatory but in next AY if you choose normal taxpayer instead of Presumptive, then in subsequent years (remaining 5 years block) again you cannot adopt 44AD.

Hope reply will satisfy your query.

RAJA P M

RAJA P M (Expert)
Follow

27 July 2019 Yes... If You are opt sec 44ad in AY 19-20 then You will continue the same to next 4years... In case you will opt out from the sec then Audit is applicable & You can't opt next five AY.

TARIQUE RIZVI

TARIQUE RIZVI (Querist)
Follow

29 July 2019 and if by the way the next year we choose normal category and nett profit arrives as at 2%m whether we will have to get the books audited ?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

29 July 2019 Yes tax audit applicable if you have taxable income.

TARIQUE RIZVI

TARIQUE RIZVI (Querist)
Follow

29 July 2019 In Ay 18-19 the return was filed u/s 44-AD but in Ay 19-20 the net sales turnover has arrived as at Rs 2 crores as against which net profit has arrived as at Rs 4 lacs @ 2%.What should I do in such situation ? Please guide me and oblige.

RAJA P M

RAJA P M (Expert)
Follow

29 July 2019 Go with Tax Audit... ...

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Summarize this with AI

ChatGPT Perplexity Claude Google AI Grok