Section 44AB(e) Tax audit

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If you opted for Section 44AD in FY 2019-20 but then opted out for a regular ITR in FY 2020-21, and your declared income exceeded Rs. 2,50,000 (and was more than 6%/8% of your turnover), you are likely required to undergo a tax audit under Section 44AB(e). This is because subsection 44AD(5) mandates an audit for eligible assessees whose total income surpasses the non-taxable threshold.

Umashankara HB

Umashankara HB (Querist)

29 July 2023 Assesse have opted for 44AD in FY 2019-20 and opted out for regular ITR in FY 2020-21 and declared income more than Rs. 2,50,000, which is also more than 6%/8% of Total turnover. Is he eligible for audir us 44AB(e)?

Dhirajlal Rambhia

Dhirajlal Rambhia

(Expert)

29 July 2023 Yes, mandatory.
Read sub-sec 44AD(5) ...Notwithstanding anything contained in the foregoing provisions of this section, an eligible assessee to whom the provisions of sub-section (4) are applicable and whose total income exceeds the maximum amount which is not chargeable to income-tax, shall be required to keep and maintain such books of account and other documents as required under sub-section (2) of section 44AA and get them audited and furnish a report of such audit as required under section 44AB.

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Dhirajlal Rambhia

Dhirajlal Rambhia

(Expert)

12 September 2024 Good Luck.

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