44AD VS 44AB AUDIT
This query is : Resolved
Quick Summary
05 August 2026
AY 2024-25 FILED ITR UNDER 44AD
AY 2025-26 TURNOVER RS.3.77 CRORE WITH CASH TRANSACTION LESSTHAN 5% NORMAL RETURN FILED WITH PL AND BS WITHOUT AUDIT
AY 2026-27 TURNOVER IS RS. 2.27 CRORE CASH TRANSACTION WITHIN 5% LIMIT WANT TO FILE NORMAL RETURN WITH PL AND BS WITHOUT AUDIT
IS IT POSSIBLE TO DO ??
AY 2025-26 TURNOVER RS.3.77 CRORE WITH CASH TRANSACTION LESSTHAN 5% NORMAL RETURN FILED WITH PL AND BS WITHOUT AUDIT
AY 2026-27 TURNOVER IS RS. 2.27 CRORE CASH TRANSACTION WITHIN 5% LIMIT WANT TO FILE NORMAL RETURN WITH PL AND BS WITHOUT AUDIT
IS IT POSSIBLE TO DO ??
06 August 2026
Yes, it is fully permissible for AY 2026–27. Exceeding ₹3 Crore turnover in AY 2025–26 made the assessee statutorily ineligible for 44AD, so Section 44AD(4)'s lock-in rule was not triggered. For AY 2026–27, as long as cash transactions stay within 5%, the tax audit limit under Section 44AB is ₹10 Crore; hence, filing a normal return with P&L and Balance Sheet without audit is valid.
06 August 2026
HIS ACTUAL PROFIT IS BELOW 6% STILL HE CAN FILE NORMAL RETURN WITH PL AND BS ??
06 August 2026
For AY 2026-27 he must file return under u/s. 44AD only. If wish to declare less than 6% profit audit will be mandatory.
06 August 2026
NOT SATISFIED WITH REPLY
07 August 2026
As assessee opted for sec. 44AD in AY 24-25, he must continue it for next five years (whenever applicable), if opted out in between tax audit applicable.
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