Profit less than 50%

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

16 October 2017 If an professional assesee declare his profit less than 50% in AY 2017-18
its audit mandatory for him ? Not opting 44ADA.
If yes than what is the relevance of filling ITR under ITR Form 3, with just maintaining books of accounts and declare profit below 50% and no need to gets your accounts audit. As we filed in last preceding years.

Ashiwini Ballodia

Ashiwini Ballodia (Expert)
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16 October 2017 If below 2 conditions are satified than professional is liable for audit:
1) Income is less than 50% of gross receipts
2) Income exceeds basis exemption limit i.e 2.5L in case of Individual

Querist : Anonymous

Querist : Anonymous (Querist)

16 October 2017 (Gross receipts is 35 Lakh) and declare profit 11 Lakh.
and maintaining accounts books regularly and not want to opt 44ADA.So Still its mandatory for audit or we opt regular scheme and fill ITR in form 3 without audit.

RAJA P M

RAJA P M (Expert)
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16 October 2017 Yes... You can file ITR 3 with u/s 44AA and without 44AB...

Ashiwini Ballodia

Ashiwini Ballodia (Expert)
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16 October 2017 Dear Raja Ji,
As per me if it is a specified profession than liable for audit

RAJA P M

RAJA P M (Expert)
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16 October 2017 https://www.charteredclub.com/section-44ad/

Ashiwini Ballodia

Ashiwini Ballodia (Expert)
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16 October 2017 Dear Raja Ji Kindly read last paragraph of Section 44ADA: Presumptive Taxation @ 50% for Professionals.
It is given that "However, in case the assessee claims that the profits and gains are lower than 50% – he would be required to prepare Books of Accounts under Section 44AA, maintain receipts of all expenses and get his accounts audited by a Chartered Accountant."

RAJA P M

RAJA P M (Expert)
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17 October 2017 My Dear Ashiwini Ballodia...
Please refer the link... It's says opted U/s 44ADA then can't available less than 50%. If we file u/s44ada and less than 50% then we must keep the books and audit...

But, U/s 44AA no need audit...

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Querist : Anonymous

Querist : Anonymous (Querist)

17 October 2017 Agreed with RAJA
during filling ITR with regular scheme its demand only maintain accounts u/s. 44AA not audit and file ITR, whereas when we opt for 44ADA scheme its demand audit 44AB first when we declare profit less than 50%.

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