Tax audit or 44ad

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sai deepika.k (Querist)

10 October 2017 Hello,

When an assesse has a turnover of One Crore Eighty Six lakhs (1,86,00,000),
and willing to show a profit of 8%, then is it better to file under section 44Ad or is it better to go for tax Audit report.

Thanks in advance.

Ashiwini Ballodia

Ashiwini Ballodia (Expert)

10 October 2017 Opt for 44AD because you don't have to provide BS & PL and in 44AD their is less compliance

sai deepika.k

sai deepika.k (Querist)

10 October 2017 Thank you, Sir.
Will it be the same from assessee point of view.

RAJA P M

RAJA P M (Expert)

10 October 2017 If you ready to pay Rs. 14,88,000 + cess + Interest (234A, B, C). Then go to file u/s 44ad.....!

Ashiwini Ballodia

Ashiwini Ballodia (Expert)

10 October 2017 For Assessee it make no difference, only you have to show profit above 8%/6%

CA Rashmi Gandhi

CA Rashmi Gandhi (Expert)

10 October 2017 You can opt u/s 44AD as you are ready to declare profit @8% . However if you pay u/s 44AD then you have to pay int u/s 234 A/B/C as due date is over for same. Also if you go for tax audit then CA will charge his fees for same which may be higher than Interest. So better you go for return u/s 44AD. You have to do less compliance also no need to maintain books of accounts.

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