44ad query

U/s 44AD we have to calculate profit on Total turnover.

And the probability of scrutiny is higher in case of Tax audits. As you wanna file u/s 44AD, I hope the turnover does not exceed Rs. 1 crore. So probability is very less (in my opinion).

Agreed with santosh sir, it is generally seen that chances of scrutiny are very less u/s 44AD as comparison to tax audit u/s 44AB. Please note that if loss return filed after the due date & loss is related to "PGBP" or "CG" then you are not eligible to carry forward the loss. Further in cases of loss return chance are still high for scrutiny as compared to 44AD if turnover of business is high & eligible for tax audit.  

Shivani,

Firm is providing broadband and networking services,

As per section 44AD, "The Provision of section 44AD not apply to a person carrying on any profession referred to in section 44AA"

Now under 44AA, Rule 6F of Income Tax Rules,1962, "Any assessee carrying on the profession of technical consultancy, information technology etc" are required to maintain books of account if the gross receipts have exceeded Rs 1,50,000 in all the three immediately preceding previous year or is likely to exceed Rs 1,50,000 during the current previous year if the profession is newly setup."  

I think broadband and networking service will fall within the ambit of information technology, so my opinion is file your return as normal return under ITR4 

Originally posted by : CA Vap Patel
	Shivani, Firm is providing broadband and networking services, As per section 44AD, "The Provision of section 44AD not apply to a person carrying on any profession referred to in section 44AA" Now under 44AA, Rule 6F of Income Tax Rules,1962, "Any assessee carrying on the profession of technical consultancy, information technology etc" are required to maintain books of account if the gross receipts have exceeded Rs 1,50,000 in all the three immediately preceding previous year or is likely to exceed Rs 1,50,000 during the current previous year if the profession is newly setup."   I think broadband and networking service will fall within the ambit of information technology, so my opinion is file your return as normal return under ITR4

Absolutely, ITR 4 will be filed. & it can't be assessed under section 44AD.

Agree with NKR.

I apologies for mistake. It should be ITR 5. Rightly pointed out by NKR