Section 44ad for no audit in case of cash transaction of less than 5%

ITR 421 views 3 replies

kumar agnivesh

36 Points Joined January 2014

I want to file my deceased father in law ITR as representative assesse for FY 1920 before 31st May 2021 as per the date extended. My turnover was Rs 2.9 crore. There is less than 5% of cash transaction in my receipts and payments related to turnover. Do i need to get my accounts audited as per filing u/s 44AD. As a notification dated 1.4.20, allows that there is no need to get accounts audited in case of less than 5% cash transaction, for 2 to 5 crore bracket. Also my profit is just 5.89 lakhs. As it is more of a job work and these high turnover are just because of GST compliance to show goods as purchase and sale.

I think that in 5% case for 2-5 crore bracket rule of 6 to 8% profit does not apply. Thus can I take my profit as 5.89 lakh and not get my account audited.

Replies (3)

veerendar singh

tax consultant

3306 Points Joined October 2018

The 8% profit rule will apply

so auditing will get compulsory

kumar agnivesh

36 Points Joined January 2014

In presumptive taxation taxation i.e 8% case tax audit in done u/s 44 AB(e) if lower than 8% profit is claimed. But in 5% case tax audit exemption u/s 44 AB(a), which is regular section of Tax audit, is given. Then if it was presumptive taxation then exemption of audit should have been u/s 44 AB(e) and not 44 AB(a).

Sivaramaraju G

Learner

2398 Points Joined May 2019

Agni you no need to get your books audited as per sec 44AB(1)
and you no need to show at lease 6/8% as your turnover more than 2crs.
you can go with actual figures.