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Difference between 44AD and 44AB

Ataur Rehman (193 Points)

22 July 2018

Sir please clarify difference between 44AD and 44AB.

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rama krishnan (12244 Points)
Replied 22 July 2018

44ad is presumptive taxation for eligible assessees for eligible business for turnover up to 2 crores

44ab - those who not opt 44ad and whose turnover exceeds 1 crores, required to audit their books of accounts

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prasad Nilugal (3924 Points)
Replied 22 July 2018

As per section 44Ab if your turnover exceed 1core you have get your accounts audited and as per 44AD income would be presumed to be 8% of the turnover only if turnover less than 2 crore .

RAJA P M ("Do the Right Thing...!!!") (128106 Points)
Replied 22 July 2018

Yes... I agreed to above said replies.

Also fully agreed Mr Prasad Nilugal's reply...

As per sec 44AB Tax Audit limit Rs. 1cr...
As per sec 44AD Tax Audit not applicable upto 2cr.

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