Presumptive taxation

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Gaurav Vij (Querist)

21 May 2017 SUPPOSE I AM OPTING 44AD and further i breach provision of section 44AD by claiming lower profits than 8% as per the provisions of section 44A(1) and my income is below taxable limit even then i need to get my books audited u/s 44AB .Secondly suppose in the above case my turnover exceeds 1cr rupees. What will be the implications. Tax audit will be required or not?

Nischit Sanghavi

Nischit Sanghavi (Expert)

21 May 2017 suppose you are opting for 44AD for 2 years and then in the third year you are showing your income less than 8% the audit will be applicable and got next 5 years you can not out for 44AD

Nischit Sanghavi

Nischit Sanghavi (Expert)

21 May 2017 For presumptive income now limit is 2cr.

Gaurav Vij

Gaurav Vij (Querist)

21 May 2017 agreed sir. now suppose when he showed his income in the third year less than 8% the audit will be applicable. suppose his turnover to be 40 lacs. he should as per the provision of 44AD(1) shows his income at 8% i.e 320000 BUT he shows his income below 8% i.e 5% only which turns out to 200000 only and it is below the taxable limit.. Will Tax Audit be required here in this case.??

Nischit Sanghavi

Nischit Sanghavi (Expert)

21 May 2017 in this case normal provision of tax audit will be applicable

Gaurav Vij

Gaurav Vij (Querist)

21 May 2017 got it sir thanku very much👍👍

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