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AUDIT U/S 44AB or 44AD(4)

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vijaykumar sindhi

116 Points Posted on 04 September 2022

TURNOVER FOR AY 21-22 WAS 1.20 CRORE , AND OPTED SCHEME 44AD BY SHOWING PROFIT MORE THAN 8%. NOW TURNOVER FOR AY 22-23 IS 1.50 CRORE SHOWING PROFIT LESS THAN 8% , HENCE AUDIT IS REQUIRED.
MY QUESTION IS FOR AUDIT WHICH SECTION APPLICABLE?
WHETHER AUDIT U/S 44AB(a) or 44AB(e) where Provision of 44AD(4) apply.
And Whether this should be count in 60 AUDIT limit or not

Replies (4)

Quick Summary

This discussion addresses the applicability of Section 44AB for audit requirements when a business opts for Section 44AD. The user's turnover for AY 21-22 was ₹1.20 crore, and they declared profit above 8% under 44AD. For AY 22-23, the turnover increased to ₹1.50 crore, with profit declared below 8%, necessitating an audit. The core question is whether Section 44AB(a) or 44AB(e) applies, specifically concerning the provisions of 44AD(4), and if this audit counts towards the 60-audit limit. The consensus suggests Section 44AB(e) is applicable and does not count towards the 60-audit limit.