WHAT WILL BE TURNOVER
LIMIT FOR 44AD audit excluding in celling limit? 2 CRORE OR 1 CRORE? AS UPTO 2 CRORE ASSESSEE CAN TAKE BENEFIT OF 44AD.
Ceiling Limit on Specified Number of Tax Audits by CA
Replies (7)
Quick Summary
Assessee can take benefit of 2 Cr u/s. 44AD of IT act...
Secondly, the reason why 44AD etc is not included in number of Tax Audits… may be because the Assessee has an option to avoid the Audit by declaring 8/6% on turnover as profit. Since this option is extended for a turnover upto 2 Crores, on the same logic, such audits not become part of the ceiling.
In audit report 3cb clause 8 if options take if turnover between 1 to 2 cr
a or e
a or e
If Sec. 44AD (4) & (5) were applicable to assessee, select option 44AB(e); otherwise sec. 44AB(a) of the act.
Revised Guidance Note on Tax Audit if turnover above 1 crore select option ( a) if (a) selected it's considered audit under 44AB (a) and is considered in celling limit due to guidance note more confused
Yes, if audit is done as per sec. 44AB(a), and the same is counted under overall limit of 60.
But when the audit is done as per sec. 44AB(e), as required/ directed by sec. 44AD(4) r.w.s. 44AD(5), the same will not be calculated u/s. 44AB(a), even if the turnover is above 1 cr. but below 2 crs. & as such it will not be included in overall limit of 60.
A very good explanation Dhirajlal Sir.. .
Thanks, Its my pleasure...
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