Tax audit applicability 44AB
This query is : Resolved
19 September 2022
Dear Experts
One of my client is dealer of second hand car. Till last year, his turnover was below 2 crore and so income was declared u/s 44AD. But now this year, his turnover is around 4 crore and cash receipts and payment are less than 5%.
My question is whether he is liable to tax audit as he was declaring turnover u/s 44AD earlier. His profit is also below 8% in current year
However, I feel, if turnover is exceeding 2 crore, it cannot be termed as Opt out. can we maintain books of accounts and file return without audit u/s 44AB and can declare profit less than 8% ? please guide
One of my client is dealer of second hand car. Till last year, his turnover was below 2 crore and so income was declared u/s 44AD. But now this year, his turnover is around 4 crore and cash receipts and payment are less than 5%.
My question is whether he is liable to tax audit as he was declaring turnover u/s 44AD earlier. His profit is also below 8% in current year
However, I feel, if turnover is exceeding 2 crore, it cannot be termed as Opt out. can we maintain books of accounts and file return without audit u/s 44AB and can declare profit less than 8% ? please guide
19 September 2022
Yes, your assumption is correct..
No question of opting out, as sec. 44AD in itself not applicable because of turnover.
As cash transactions are below 5%, Tax audit u/s. 44AB(a) is not liable..
File ITR 3 under normal assessment.
No question of opting out, as sec. 44AD in itself not applicable because of turnover.
As cash transactions are below 5%, Tax audit u/s. 44AB(a) is not liable..
File ITR 3 under normal assessment.
Message likes :
2 times
19 September 2022
Cash receipts and payment are less than 5%, tax audit not applicable upto 10 crore turnover.
Message likes :
1 times
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Opting our of sec 44AD
- Copyright software
- Transporter Declaration form
- Multiple trade mark
- Value of property in capital gain
- LC charges in relation to Asset purchased should be Capitalised ?
- Form 121 & TDS deduction
- Regarding appeal to GSTAT
- SALE OF MOTOR CAR BY REGISTERED INDIVIDUAL
- Regarding TDS Applicability For Director Remuneration
- GST Treatment of Insurance Commission for Existing GST Holder
- Cash gift by grand mother to her grand daughter
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
- Restoration of certificate of practice
- Regarding change in correspondence address in SSP portal
- No Compliences after incorporation
- USEFUL LIFE OF USED/SECOND HAND COMMERCIAL VEHICLES
- Claiming TDS deducted by builder on Hardship compensation and Corpus
- Address Change to another state of a Registered Trust with 12AB approval
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
