44AD applicability to newly incorporated Firm in 2022-23

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jayesh khokhariya (Querist)
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20 September 2023 Firm having turnover of Rs. 44 lakh wants declare profit around to 1% so it is compulsory to go for audit u/s 44AB(a) as firm is newly incorporated in FY 2022-23 and filing first time income tax return as firm is declaring profit lower than 6%/8% as the case may be.

QUESTION 1).IS it compulsory to adopt 44AD as firm declaring profit lower than 6% and carried out audit under section 44AB.

2).maintenance of books of account is compulsory if firm want to file normal return without considering 44AD

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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20 September 2023 Not compulsory to opt for 44AD.
Tax audit not applicable in view of new firm.

RAJA P M

RAJA P M (Expert)
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21 September 2023 Yes, I agreed with Mr CA R SEETHARAMAN Sir.... 1. Not compulsory for 44Ad. But, If opt 44ad then profit must be 6%/8%.... 2. Yes, It's compulsory if You are not opting 44ad.

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