Thank you sir but in year f.y.2018-19 matter of audit arise or any notice will issue ...?
Because sir he has filed itr 3 not under section 44ad regular with all balance sheet and profit and loss account details and when i read provision of section 44ad i came to know that when assessee has filed itr under sec. 44ad then compulsorily need to file under same sec. For 5 years if breach then compulsory audit provision applied even income shown more than 8% and turnover below 1 cr.
Thats why please suggest me sir.
| Originally posted by : Suresh Parmar | ||
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Because sir he has filed itr 3 not under section 44ad regular with all balance sheet and profit and loss account details and when i read provision of section 44ad i came to know that when assessee has filed itr under sec. 44ad then compulsorily need to file under same sec. For 5 years if breach then compulsory audit provision applied even income shown more than 8% and turnover below 1 cr. Thats why please suggest me sir. |
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Yes... You are correct with sec 44AD.
If the said asseessee filed his ITR as per above then Audit is applicable AD(4).
But, It's not applicable if ITR Form changed from 4 to 3. If income will be changed from 44AD to 44AA with ITR.
So, The ITR 3 can be file with 44AD...
Try to file revised ITR..
1. As per sec 44AD(4), if an assessee opted for presumptive taxation u/s 44AD, then he is bound to show profit under sec 44AD for the next 5 AY. If he fails to show, then he shall not be eligible to opt sec 44AD for the next 5 years.
2. In addition to the above section, if sec 44AD(4) is applicable and assessee's income exceeds the maximum amount which is not chargeable to tax ( >Rs. 2,50,000) during the year then irrespective of his T.O he compulsorily needs to maintain BOA and conduct tax audit u/s 44AB.
3. In your case, even if your T.O is below Rs. 1 crore tax audit is mandatory by virtue of sec 44AD(5).
Please correct me if the above solution has an alternative view.
You can revise the ITR
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