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44 AD or 44 AB

ITR 274 views 2 replies

Ajay Quirine Miranda

jeppu.dakshina kannada

45 Points Joined May 2014

I have a Query regarding one of my client.

In 2014-15, Turnover was 99,45,641 so dealt with 44AD .

In 2015-16, Turnover was 1,44,36,500 so Tax audit as per 44AB (1 Crore)

So 2016-17 , Turnover is 1,22,63,270

So my query is whether for 2016-17 Financial year whether should be filed return under Presumptive profit -44AD or Tax Audit- 44AB

Thank you,

Regards,

Ajay Miranda

Replies (2)

Ronak Mehta

CA Professor

14 Points Joined December 2016

For FY 2016-17, return can be filed by following presumptive taxation u/s 44AD since the turnover is less than 2 crore. However if the client wishes to pay tax on the profit less than that mentioned in section 44AD, then audit u/s 44AB will be compulsory.