if i declare my net profit below 8% of turnover (HUF) and get tax audit done u/s 44AB....in any FY , will it attract the NEW provisions of section 44AD...i.e. do i have to follow 44AD for NEXT 5 YEARS..?
AND what if in next FY my turnover crosses over 2 crore..? can anyone clarify please..?
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Clarification on 44AD
Replies (6)
If you do tax Audit for below 8% profit reason it will be considered as continuation with presumptive income scheme. But if your turnover crosses 2 crore then you will be out of presumptive income scheme and the 5 years criteria will apply.
when u go for audit, u r not in purview of presumptive income. correct me if iam wrong
What if i have maintained all books of accounts and my receipts are below the limit of tax audit and i want to show less than 8%
then you have to audit your accounts u.s. 44AB
im already declaring my profit below 2 cr...thats y im opting for tax audit..
The condition of 5 years will apply if you remain an eligible assessee, but don't claim at least 8% of profit.
If you stop being an eligible assessee, like greater turnover, then subsection 4 don't apply.
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