TAX AUDIT FOR?

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Turnover is 23 lac but NP is less thn 1%. Dont want to audit. It can be possible?
Replies (9)
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.
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?

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.
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?

8% is minimum profit which is required to declare u/s 44ad. You are free from declaring profit more than 8%.

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
 

You need to clear that whether you provide service independent or commission basis. If you received commission for providing advertisement service then you are not eligible to avail presumptive taxation scheme under section 44AD / 44ADA.

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 ?

You provide service to foreign company and company pay you fee for your service doesn't constitute agent principle relationship. you receipts will not consider commission. You are eligible to file income tax return ITR4 Under section 44AD.


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