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Related to income tax audit
An Assessee having Tour income was under tax audit u/s 44AB (a) for AY 16-17, turnover exceeding prescribed limit .Net profit declared for AY 17-18 was below 8%/6% and hence he got his accounts audited u/s 44AB(e). In AY18-19 his T/O is 118 Lakhs & net profit is 15 Lakhs. Query ; Whether he has to go for compulsory tax audit for AY 18-19 as per amended provision relating to Sec 44 AD? (2) whether he has to get his accounts compulsorily audited for next 5 AY irrespective of profit if in each year his income exceed Basic taxable limit,(GTI)????
Replies (2)
1. In previous AY 17-18 Your accounts under audited. The in ay 18-19 You can opt sec 44AD and Profit shown as per sec 44AD. No more restriction if opt sec 44AD. But, Next 4 AY You follow sec 44AD. If not then Tax Audit applicable as per sec 44AD(4).
2. In case You got sec 44AD in AY 18-19 and You ll opt out in ay 19-20 then Tax Audit levied next 5 Aassessement Years..
2. In case You got sec 44AD in AY 18-19 and You ll opt out in ay 19-20 then Tax Audit levied next 5 Aassessement Years..
Sir in AY 17-18 we had audited under section 44AD because we declared profit below 8%..which means we had opted for section 44AD and the amendment is applicable from AY 17-18.
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