A company has a turnover of morethan 2 crores for the AY 17-18 and the tax audit is duly filed. for the current AY 18-19 the turnover is less than a lakh. Whether we can opt for presumtive income scheme 44AD this year? If the turnover for next AY 19-20 exceeds two crores can we convert to tax audit again? kindly help me with the presumtive income 5 yr scheme.
If you are opting for the presumptive scheme, you must
a. File presumptive scheme for at least 5 years in continuation
b. If you decide to show and file profits as per regular business (ITR-3) before the end of these 5 years, you will lose presumptive benefits and disallowed from presumptive taxation for the subsequent 5 years.
Please note that 5 years shall be counted starting the year in which you first file usual taxes for such business.
"A person can declare income at lower rate (i.e., at less than 6% or 8%), however, if he does so, and his income exceeds the maximum amount which is not chargeable to tax, then he is required to maintain the books of account as per the provisions of section 44AA and has to get his accounts audited as per section 44AB"
so according the above statement, a company less than 2cr turnover can show income less than 6 or 8% but if the income is less than 2.5lakhs he is not liable for tax audit?
Eg. if a company turnover is 4,00,000 and he disclose 5% income that is rs. 2,00,000 he is not liable to Audit and maintain books?
Thank you, Im my case my client filing for last 2 years and we are preparing tax audit. But this year his turnover is less so whether we can choose 44AD?
| Originally posted by : Shri | ||
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Thank you, Im my case my client filing for last 2 years and we are preparing tax audit. But this year his turnover is less so whether we can choose 44AD? |  |
Yes... If eligible business.
But., If you are opt u/s 44AD then You must follow this sec upto 5 Years ( AY 2018-19 to 2022-23)
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