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No d profit above 6

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NICSON JOHN

514 Points Posted on 22 December 2021

last year i filed return in regular assesment but profit shown is below presumptive limit.no audit is done.what will be the issue in future..??pls reply thanks in advance

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Quick Summary

This discussion clarifies the rules around presumptive income tax under Section 44AD. It explains that an audit is generally only required if you stop filing under 44AD before completing five continuous years. For new filers with turnover under £1 crore, no audit is needed even if profits are below the presumptive limit. The user's specific case involves a turnover of £1.13 crore.

CA Aakarsh Jain

10436 Points Posted on 22 December 2021

In this case Audit is only required when you discontinue filing your return in 44ad before 5 continuous years. If you never filed your return before in 44ad and your turnover is less then 1 cr then no audit is required even you are showing your income less than presumptive limit.