Hello,
Assuming a service exporter avails 44ada. Has a turnover of 30lakhs.
Tax is declared on 15lakhs.
What if his income is more than that, his bank balance is more and the balance sheet won't match right?
How does this work?
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44ada Question on Income
Replies (4)
The provisions of section 44ada reads as 50% of total turn over or any other higher sum. so you are required to declare the actual profit or 50% of total turnover, whichever higher as your total income
Well, okay, but if it is actually less than 50%?
If it is less than 50% then u have to get your books of accounts audited by a CA under 44AB.
Makes sense. For example sub section (5) of section 44AD gives an option to the assessee to declare profit lower than 8% / 6%, by maintaining books of account etc. as required under section 44AA and by furnishing audit report as required under Section 44AB.
Thanks!
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