Income tax audit under section 44ab and 44ad

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samkasvala

proprietor

111 Points Posted on 08 August 2018

Thank you very much in advance

An assesee is having turnover as under

As per Profit and loss account Rs 88 lakhs (EXCLUDING TAXES) where

As per sales register Rs 1.2 crores ( INCLUDING TAXES)

Q.1 Turnover Excluding Taxes or Turnover including taxes is to be considered for audit u/s 44AB ?

Q.2 If assesee selects section 44AD, turnover limit for audit is Rs 2 Crores and he will not be liable for audit . Is there any benefits in opting section 44AD as comared to section 44AB.?

Replies (2)

RAJA P M

"Do the Right Thing...!!!"

77792 Points Posted on 08 August 2018

1. As per sec 44ab turn over limit is Rs 1Cr. And Turn Over calculate excluding taxes. So, Your T/O is Rs. 88 lakhs as per sec 44AB...
But, Your total invoice value exceeding Rs. 1cr***

2. As per sec 44AD T/o is 2 Cr. The above said Assessee and His income is eligible under sec 44ad then He can avail the presumptive taxation scheme.
Sec 44AD benefit is "No need Regular Books of Accounts" and Simply show profit 8 percentage or above 8 percentage...

Note :
If Asseessee can't opt or Business & Assessee not eligible u/s 44AD then Tax Audit applicable as per sec 44AB...

Bcoz, Sec 44AD T/O calculated Total Value of Income with Including Taxes...