Business income lesserthan 6%

Sagar (Consultant) (86 Points)

05 July 2019  

Hi everyone,

As per section 44AB (d) " carrying on the profession shall, if the profits and gains from the profession are deemed to be the profits and gains of such person under section 44ADA and he has claimed such income to be lower than the profits and gains so deemed to be the profits and gains of his profession and his income exceeds the maximum amount which is not chargeable to income-tax in any previous year".

So if we interpret the audit under Income Tax is applicable to assessee whose professional income declared lesser than 50%, what happens to business who want declare profit lesserthan 6%.

whether business whose Income is lesserthan 2 crore and profit is lesserthan 6% requires audit.

Please help in solve the issue