Tax audit and 44AD query

219 views 7 replies

Akshat Varaiya

229 Points Joined June 2019

My business T/O is as follows
F. Y. 20-21 - Rs. 1.75Cr.
F. Y. 21-22 - Rs. 3.25Cr.

Uptil F. Y. 20-21, I was opting for 44AD but in F. Y. 21-22, I am not eligible for 44AD. My cash receipts and cash payments are more than 5% of total receipts and payments.
My 5 years period has not been completed as per 44AD requirement but I now don't have option for opting 44AD.

My query is that whether I am liable for Tax Audit u/s 44AB or not?

Replies (7)

shyam lahoti

STUDENT

30 Points Joined January 2015

Yes you are liable for AUDIT

Akshat Varaiya

229 Points Joined June 2019

But i wanted to opt for 44AD and i don't have any option for 44AD, then too i am liable?

vikash dhanuka

66 Points Joined September 2015

There is no option for 44ad once your turnover cross 2cr

hemant sharma

141 Points Joined June 2017

Since your turnover for f.y exceeds 2 crore. you are not eligible for 44ad and you are required to maintain books of a/c and get audited the same as per sec 44aa and 44ab

Eswar Reddy S

CFO- at NHTF

58280 Points Joined August 2012

If there is profession portion then you can consider around 1.9Crores under business and balance under profession.

So you can opt 44AD and 44ADA if you have supporting evidence

debora M

BUSINESS DEVELOPMENT MANAGER

1697 Points Joined February 2019

Clause (e) of Section 44AB states that a person, who has opted for the presumptive taxation scheme under Section 44AD in any of the last 5 previous years but does not opt for the same in the current previous year, shall be liable to get his accounts audited if his total income exceeds the maximum amount not chargeable.

If its case falls under 44AD(4) then firms is liable to Tax Audit u/s44AB(e) provided if it earned any positive income. However, in the case of losses the firm is not required to gets its accounts audited u/s44AB(e) assuming Turnover of firm is less than 1 Cr.