Presumptive taxation

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Gaurav Vij (Querist)
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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)
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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)
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21 May 2017 For presumptive income now limit is 2cr.

Gaurav Vij

Gaurav Vij (Querist)
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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)
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21 May 2017 in this case normal provision of tax audit will be applicable

Gaurav Vij

Gaurav Vij (Querist)
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21 May 2017 got it sir thanku very much👍👍

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