Under 44ad income tax rules

Under 44AD, what are the requirements to be uploaded like P&L acct, B/Sheet, 

Also PLEASE LET ME KNOW IF THE ACTUAL PROFIT IS COMING HIGHER THAN 8% AS PER BOOKS, LETS SAY EXAMPLE 20% , THEN CAN ONE FILE IT RETURN UNDER 44AD ?

Replies (4)
If you opt for 44AD then no books of accounts are required to be maintained if you show net profits above 8% or 8% of your turnover.
Yes the scheme allows higher declaration of income, higher than 8%.

Thanks Mansi but how IT officer will judge my income if I pay on 8% of my turnover ?

Since No Books of a/c to be maintained, I only have to show my turnover in sales book and bank statement , Ho can he judge whether I have 8% as declared or 10% actually, 12% actually or 20% actually ?  Can I deny him if he demands my balance sheets or profit and loss account ?

In form ITR 4 SUGAM, they are asking Sundry creditors, sundry debtors and cash at bank. From these figures , how can he verify the actual profit ? There are so may other expenses which cant be produced since i am not liable to maintain books. 

Yes no books required to be maintained so he can not demand for profit and loss or balance sheet but yes he can demand other statements like sales book or bank statement, etc according to the scope.
Generally what I have witnessed and as per my readings is ITO can judge the profit % as per general trend of market % or by comparing with similar or same business doing firms according to what % then must have shown and verify profit in this manner.
There are lesser chances of scrutiny in 44AD as compared to 44AB but yes there are cases of notices.

Hi Mansi,

My CA had filed my return ITR 3 for fy 16-17 , under 44AD  and had some capital gain as well.

I keep getting error 310 from Bangalore asking for P.N.L and B/SH, which obviously are not 

required under 44AD, no accounts maintained. Kindly advise asap, as they give only 15 days but letter only comes after 12 days.

 

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
14 October 2026
Accountant

Rize.farm

Bengaluru

B.Com

View Details
Company
Featured 27 October 2026
semi-qualified CA

Saini Pati Shah & Co LLP, Chartered Accountants

Mumbai

CA Final

View Details
Company
15 October 2026
Senior Accountant

Continental Belting Pvt Ltd

Mumbai

B.Com

View Details
Company
08 October 2026
SALES TELECALLER

HIRE NOVA

Lucknow

Graduate (Any)

View Details
Company
07 October 2026
Senior Account Manager

Amplio Invest

Mumbai

M.Com

View Details
Company
16 October 2026
CA article trainee

Zerdi & Co. Chartered Accountants

Pune

CA Inter

View Details
Company
12 October 2026
Finance

I-Genext Consulting Private Limited

New Delhi

CA

View Details
Company
ARTICLESHIP 01 October 2026
Articled Assistant

KPSN & Associates LLP

Chennai

CA Inter

View Details