Sec 44AD Provision

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Proprietor
538 Points Posted on 08 July 2020
If a person has turnover of ₹ 1,20,00,000/- in 2017-2018 and has shown income u/s 44AD. In 2018-19, he has a turnover of ₹ 1,80,00,000/- and shown income as per audited accounts. In 2019-20, he has turnover of ₹ 80,00,000/-.

Now my question is that whether in 2019-20 he has to audit his account or he can show his income as normal business income
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On 08 July 2020 at 12:16 Report
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This discussion clarifies the rules surrounding Section 44AD of the Income Tax Act, particularly regarding audit requirements. If you opt for Section 44AD, you generally need to maintain this for five consecutive years to continue benefiting from it. Switching to audited accounts in one year can disqualify you from using Section 44AD for the following five years, necessitating an audit during that period.

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4510 Points Posted on 08 July 2020
Originally posted by : Amit Jain
If a person has turnover of ₹ 1,20,00,000/- in 2017-2018 and has shown income u/s 44AD. In 2018-19, he has a turnover of ₹ 1,80,00,000/- and shown income as per audited accounts. In 2019-20, he has turnover of ₹ 80,00,000/-.Now my question is that whether in 2019-20 he has to audit his account or he can show his income as normal business income

If A Assesses opt Option of 44AD then he eligible to continuous  5 Year to take benefit of Section 44AD otherwise increase Limit.

If you file return other than 44AD than you are not eligible to file return u/s 44AD in next 5 Subsequent Year

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On 08 July 2020 at 15:19
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3235 Points Posted on 08 July 2020
You have to get your account audited for 5 years.. after that you can claim presumptive income under section 44AD
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On 08 July 2020 at 20:13

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