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Section 44AD Applicability?

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Sanju.P

CA Practice

111 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.

Replies (4)

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.

Devil

Confidential

177 Points Posted on 18 May 2020

Yes u can show income u/s 44AD

sabyasachi mukherjee

Profession Business

28246 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.