Professional can take benefit u/s. 44ADA turnover limit extent to 10 cr

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Paresh Vasani (Querist)
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06 April 2023 Can professionals declare lower profit (below 50%) under section 44ADA without getting audit u/s. 44AB turnover up to 10 crores? Like other than professional u/s. 44AD where gross receipts of more than 95% are digitally received.

let's take an example:

A professional has a gross business receipt of Rs. 2.50 cr wherein cash receipts are less than 5% and profit declared 60 Lakhs under section 44ADA, so is it allowable?

kindly guide me

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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06 April 2023 No. Both the schemes are different.
If professional declare less than 50% profit margin, tax audit u/s. 44AB(d) of IT act, is mandatory. (even if both cash receipts & cash expenditures be less than 5%).

Paresh Vasani

Paresh Vasani (Querist)
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06 April 2023 Thank you so much sir

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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06 April 2023 You are welcome.

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