example
A follow 44AD for 2 years and and his business is shut down from third year.
now he has no business income in the starting of third year and his salary is above basic exemption limt after deduction then should he liable for audit?
second senario
continue in the above example onwards shut down of his business and start new business in the third year then 44AD counting of 5 years is from third year or continue as it is
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44AB , 44AD
Replies (3)
A files return with same pan and so even if some other nature of business is carried on, then also section 44AD will apply, 5 years will continue from previous business And also he is required to do audit. The above reply for second scenario.
For first scenario, when there is no business, question of 44AD doesn't apply.
For first scenario, when there is no business, question of 44AD doesn't apply.
Girish jain thank you, but i am confuse in first senario that if he comes out from the 44AD then books should be audited if net total income goes above basic exemption limit.. so that i am asking this.
Parath, you are right. We are expecting ammendment in respect of the same in future. But as of now, section says to audit as total income exceeds basic exemption limit.
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