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44 aba

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sathish

doctor

21 Points Posted on 17 February 2018

I'm a doctor by profession with gross income below 25 lakhs. I have filled my returns for FYI17 18 in June 17 through my auditor. Now that I have to refile for some reason my auditor says according to new rule (which was missed out while filing my audit last year) I have to show at least 50% as gain (50% for professional and 8% for business) as I reaseached a bit in internet and my friends it says if the total income/turnover is less than 25 lakhs my books need not be audited.

So should I follow my auditor's advice stating that I have to recalculate everything including my expenditure and depreciation and maximum I can show only 50% of gross income?

Replies (1)

CMA Poornima Madhava

CMA

13117 Points Posted on 17 February 2018

As per section 44ADA, 50% of turnover or gross receipts can be declared as income in case of profession provided the turnover/receipts does not exceed Rs.50 lacs. In your case, you may opt for it if it is beneficial to you (say, actual profits are more than 50%). In your case, since the turnover is Rs.25 lacs, audit is not necessary provided you declare a minimum of 50% of turnover as profit. Moreover since you already have filed the return and now intending to revise it, make sure you have sufficient evidence in case of scrutiny if any.