Section 44AD Applicability?

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CA Practice
65 Points Posted on 18 May 2020

Whether section 44AD would be applicable in the below mentioned case?

Turnover for FY:2019-2020:Rs.69,00,000/- (All cash sales)

Net Profit: Rs.2,76,000 (Less than 8%)

Total Income above basic exemption limit

For FY 2018-2019 Income tax return filed under normal provision of Income tax act.

 

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On 18 May 2020 at 11:32 Report
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Quick Summary
This discussion clarifies the applicability of Section 44AD for a business with Rs. 69,00,000 in cash sales for FY 2019-20, reporting a net profit of Rs. 2,76,000. The consensus is that Section 44AD is applicable, as the net profit is less than the presumptive 8% of turnover. It also confirms that an audit under Section 44AB is not required in this specific scenario.

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Confidential
124 Points Posted on 18 May 2020
Yes u can show income u/s 44AD
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On 18 May 2020 at 20:47
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Profession
19978 Points Posted on 18 May 2020
Applicability of 44AD :
PRESUMPTIVE INCOME

A sum equal to 8 % of the gross receipts or the total turnover of the assesse in the previous year on account of such activity.
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On 18 May 2020 at 20:53
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CA Practice
65 Points Posted on 18 May 2020

Hi,

Whether we have to do audit under section 44ab?

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On 18 May 2020 at 21:33
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ACA
1119 Points Posted on 29 July 2021
Yes by an Chartered Accountant who is in full time practice
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On 29 July 2021 at 20:08

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