TAX AUDIT FOR?

Originally posted by : CA Sunil Kumar
	Audit is compulsory when you declare profit below 8% and income exceeds basic exemption limit. In your case you are declaring profit 1%(below 8%). If your income from all other sources doesn't exceeds basic exemption limit, Then there is no need to audit books of accounts u/s 44AD.

Sir 

I used to file ITR 3 every year for my business every year with Maintaining book of accounts (No audits because of less than 20 lakh) It's almost 4 years with ITR 3 with PROFIT & LOSS and Balance sheet. NOW if I file my tax UNDER ITR 4 44AD presumptive income 6%(Digital), It will affect or I will get notice from income tax dept. for changing and not paying taxes because in this section there is no tax upto 45L (6% digital) what do you say?

Originally posted by : CA Sunil Kumar
	Yes, you can file your income tax return under section 44AD (turnover limit for section 44AD is 2 crore). but the lock in period is 5 years means once you opted 44AD, you cannot file return under normal provisions without audit irrespective of turnover limit.

Thank you but last year my profit was 28% but this year if I file ITR using 44ad my profit will be 8% only. Is not risky?

can I show a profit of 15% in 44Ad ? Or I need Strick to 8% only for 5 years. Can I up profit any year?

Thank you Sir. One last query

Can i file ITR 4 with 44AD with code  0701 Service Sector [Advertisement agencies] is this comes 6% (digital) or under professional 50% Checked from here https://www.incometaxindiaefiling.gov.in/eFiling/Portal/StaticPDF/List_Of_Useful_Codes.pdf?0.1419578540147739
 

My business is outside India only. It's only between ME and Another Foreign company. So the thing is Foreign company gives Advertisement independently to me & I promote it after that we share 68% and 32% with each other.

What do you think its service independent or commission basis ?