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Presumptive Taxation 44AD

Sudiesh (Audit Assistant) (527 Points)

15 June 2017

An individual business man having 95 lakh turnover and have 5lakh rupees profit , whether he is liable for Audit??

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20 Replies

Suresh Pai S (Tax Consultant) (1029 Points)
Replied 15 June 2017

an obvious yes

1 Like

PRABIR PAUL (*****Accountant***** Never insult to any person for any kind of lack of knowledge or misread.) (1443 Points)
Replied 15 June 2017

yes liable for audit

1 Like

Shyam Tripathy (Student) (74 Points)
Replied 16 June 2017

for presumptive taxation one has to pay tax on profit wgich is minimum 8 percent.

if 8 prcnt profit is shown then no need for audit and return b filled in itr4-sugam.

turnover shud b below 2 crores and profit minimum 8 percnt on gross turnover to surpass audit provisions.

2 Like

Sunil Sharma (CMA & CS) (584 Points)
Replied 16 June 2017

No not required when opted for Presumptive taxation. ..as the T.O is 2 cr. Just have 8 % of T.O or your profit which ever is higher. and file ITR 4 BUT make sure you do not claim any expenses when opt for 44AD not even depreciation.

Regards
Sunil Sharma

CA Jubair J Jeri (Practicing Chartered Accountant) (147 Points)
Replied 16 June 2017

Yes , liable for audit u/S 44AB.

Sunil Sharma (CMA & CS) (584 Points)
Replied 16 June 2017

can someone one explain how it is liable as the Turn over is less than 1cr which is required for 44ab and in case he wants to opt for 44AD why can't he do so. as the T.O. limit is 2 cr...?

Suresh Pai S (Tax Consultant) (1029 Points)
Replied 16 June 2017

Because it says in 44AD.

Udit Singh (Articled assistant) (38 Points)
Replied 16 June 2017

In presumptive taxation one has to pay tax on profit which is minimum 8 percent.

if the decleared profit is below 8% tax audit is required

in the given case turnover is below 8% so tax audit is required

profit should be 7,60,000 (95,00,000*8%) or above for exemption from tax audit

1 Like

RAJA P M ("Do the Right Thing...!!!") (127125 Points)
Replied 16 June 2017

Yes , liable for audit u/S 44AB...

If he can paid 8% tax of his total income then its not go to under TAX AUDIT....

Ram Singh (ACCOUNTANT AND TAX CONSULTANT ) (7 Points)
Replied 16 June 2017

Yes , liable for tax audit u/S 44AB...
profit should be 7,60,000 (95,00,000*8%) or above for exemption from tax audit,

Studentsca (CA Practice ) (3577 Points)
Replied 16 June 2017

If you want to opt for sec 44 AD, Then you have to declare profit as 8 ℅ of Turnover.

Otherwise don't opt for 44AD.

CA Rashmi Gandhi (Chartered Accountant) (86220 Points)
Replied 16 June 2017

Yes liable to audit as tax is below 8% of turnover.

Sunil Sharma (CMA & CS) (584 Points)
Replied 16 June 2017

Originally posted by : Suresh Pai S
	Because it says in 44AD.

Yes the section says like that but when it comes to practice it is treated like what I have mentioned that the higher of profit achieved or 8% of T.O.