Business income lesserthan 6%

Tax queries 255 views 3 replies

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

Replies (3)
It is simple, if you do business and income is above maximum amt which is not chargeable to tax, if you declare profit below 8 or 6% as the case may be you would be liable to audit.

Thanks for your response.

 

Understood, but in which section or provision does it mentions. Because in Finance Act, 2017 the word business was replaced by profession.

I Know we can't file ITR without audit if profit is lesserthan 6% but to know the provisions of the Act.

 

Refer 44AB clause C- carring on a business....


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