Breakage of 44ad

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Kkk
885 Points Posted on 03 January 2022
last year itr filled under 44 ad but this yr sale is 68 lacs and profit is less than.2.5 lacs itr3 is filled. but at the time of uploading of return error is shown that profit is less than 8% of turnover and audit detailed is not suitmitted.what this error means..and how to rectify it l.
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On 03 January 2022 at 14:28 Report
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Quick Summary
This discussion addresses an error encountered when filing an Income Tax Return (ITR) under Section 44AD. The user declared a profit below 8% of their turnover, triggering an error stating that an audit is required. The core issue revolves around the provisions of Section 44AD(4) and 44AD(5), which mandate a tax audit for five years if presumptive income is not declared or if the declared profit falls below the specified percentage, even if the total income is below the taxable threshold.

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SEO Sai Gr. Hosp.
121427 Points Posted on 03 January 2022

Either declare profit as 6/8% of the total sales or go for tax audit u/s. 44AB(e) for next 5 years...

1 Reply
On 03 January 2022 at 14:41
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Kkk
885 Points Posted on 03 January 2022
But why plz explain the provision
1 Reply
On 03 January 2022 at 14:47
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25 Points Posted on 03 January 2022
As per sec 44ab clause (e), if profit declared from business is less than 8% (6% in some cases)
2 Reply
On 03 January 2022 at 15:04
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SEO Sai Gr. Hosp.
121427 Points Posted on 03 January 2022

Read Sub-sec. 44AD(4) of IT act...

1 Reply
On 03 January 2022 at 15:05
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25 Points Posted on 03 January 2022
Tax audit is mandatory
1 Reply
On 03 January 2022 at 15:05
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Kkk
885 Points Posted on 03 January 2022
But profit is less than maximum amount not chargeable to tax I.e 235000
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On 03 January 2022 at 16:30
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SEO Sai Gr. Hosp.
121427 Points Posted on 03 January 2022

Not Just profit.....  the total income should be below the BEL...

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On 03 January 2022 at 18:38
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Kkk
885 Points Posted on 03 January 2022
He does not have any other income except net profit from bussiness I.e 235000
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On 03 January 2022 at 18:47
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SEO Sai Gr. Hosp.
121427 Points Posted on 03 January 2022

In that case sec. 44AD(4) is not attracted.... i.e. no tax audit liability...

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On 03 January 2022 at 19:03
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Kkk
885 Points Posted on 03 January 2022
But portal is showing error at the time of e verification of itr.possible error in return
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On 03 January 2022 at 19:08
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SEO Sai Gr. Hosp.
121427 Points Posted on 03 January 2022

No error in ITR, if the gross total income of assessee (individual/HUF) is BEL.

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On 03 January 2022 at 19:40
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Kkk
885 Points Posted on 03 January 2022
But it's showing.plz tell.how to resolve it.as at the time of clicking on hyperlink of error it does not get opened like any other error.and It is also mentioned that possible error.
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On 03 January 2022 at 19:46
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CA
4330 Points Posted on 03 January 2022
There may be some other error, if you need any help then I can help you in filing your ITR as we have computax software which will not show this error and resolve the issue. Audit is not required. Check your inbox if interested.
2 Reply
On 03 January 2022 at 21:49
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Kkk
885 Points Posted on 03 January 2022
Compu is just a tool not the portal itself it will migrate the data to the portal itself.
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On 03 January 2022 at 22:01

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