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.
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19 September 2022
Cash receipts and payment are less than 5%, tax audit not applicable upto 10 crore turnover.
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