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tax audit for presumptive income 44AD

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student
68 Points Posted on 28 August 2019
hi
is tax audit manadatory for assessee following presumptive income under 44ad turnover 1.12 cr. profit shown at 6%

thanks
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On 28 August 2019 at 16:30 Report
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17264 Points Posted on 28 August 2019
No tax audit as turnover limit is upto 2 crore .
As per your query profit shown is 6%. However please note that minimum is 6%. if actual is more then declare that amount. Assuming that your total turnover 1.12 Crore is in cheque or digital mode.
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On 28 August 2019 at 17:55
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student
68 Points Posted on 28 August 2019
my whole turnover is digital mode. and accordingly I calculated 6%.
as per 44ad I am not required to maintain books. then how will I know my actual profit. whether it is higher than 6% or not.
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On 28 August 2019 at 17:58
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17264 Points Posted on 28 August 2019
You only know your business average profit margin. You are free to show more than 6%. No compulsion.
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On 28 August 2019 at 18:53
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student
68 Points Posted on 28 August 2019
At year end I feel that maybe my profit is 10%. so if I to have to mandatorily show 10% profit?
from the start of year I didn't maintain books. I didn't keep of purchase and expense. with 10% profit shown and turnover under 2 cr. then how can I get tax audit done with no records maintained
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On 28 August 2019 at 19:05
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Student
23693 Points Posted on 28 August 2019
TAX AUDIT u/s 44AB of the Income Tax Act 1961 is not applicable for persons opted for PRESUMPTIVE TAXATION SCHEME of Section 44AD of the Income Tax Act 1961.
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On 28 August 2019 at 20:17
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17264 Points Posted on 29 August 2019
The condition is minimum 6% profit. More that is 10% no problem . You do not have tax audit.
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On 29 August 2019 at 05:37


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