Dear sir,
You have to go for audit for F.Y. 19- 20 also
Fy 2017-18 my turnover was below 2 crore and i opted for presumptive scheme incometax.. now in fy 2018-19 my turnover is above 2 crore so i have to get my account audit and have to opt out from presumptive scheme... what if in fy 2019-20 my turnover will below 1 crore so can i opt for presumptive scheme then or have to get my accounts audited for next five year.. or how can i get back into persumptive scheme?
Have to go for audit for next five years?
Dear Sir,
An assessee who has maintained books and furnished audit report for the particular financial year can enter Section 44AD and declare net profit at the rate of 8% / 6% without maintaining books etc for the next years.
Hii
if your accounts gets audited due to crossing of thresh hold limit of Audits ( i.e. 2 crore) then you are still eligible for presumptive taxation in next years because you had not opt out this, you became in eligible to opt due to turnover limitation.
thus if you are showing profit equal to or more than 6/8% then no need for TAX AUDIT in next year(s).
Dear Sir,
Hope you are doing well !!
No, you do not need to go for audit for next five years as you have not opt out from presumptive taxation scheme.
Thanks & Regards,
Payal Chhajed
Hi
You can get back to presumptive taxation for FY 19-20; no need for audit of accounts.
The provision of blocking 5 years is applicable when the assessee is eligible for presumptive taxation but opts out of it. However, in your case, you become ineligible for presumptive taxation in FY 18-19.
- Yes you can again opt for 44AD in F.Y. 19-20. It is not compulsory for you to get the books audited for the next five years as you were not eligible for 44AD in 18-19.
Since in FY 2018-19 your turnover is above 2 crore you are getting your accounts audited and you are not opting out of the scheme since it's compulsory to get books of accounts audited if the turnover is above 2 crore. Therefore you can again opt for presumptive scheme next year if turnover is below 2 crore but you will be required to deduct TDS next year since you are getting your books of accounts audited this year.
Opting out of scheme means that you are eligible for the scheme but you are not opting if for eg: your turnover is 1.5 crore then also you get your accounts audited by showing income below 8% in such case you need to get your accounts audited for next 5 years and there's no way to opt for presumptive scheme during this 5 years.
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Thank you
Hi
No need to get account audited for next 5 years.You can again opt for Presumptive tax scheme if you are eligible for the same.
Blocking of 5 yrs applies when you are eligible for scheme but you chose to get account audited.
Hope it helps.
Law
Section 44 AD(1) defines eligibility for Presumptive Taxation.
Section 44 AD(4) says if you are eligible for presumptive taxation & you opt out than for continous next 5 years you cant go for 44 Ad.
YOUR CASE
When t/o is below Rs 2 cr than a business will fall under provisions of section 44 AD(1) & 44 AD(4). Thus when T/O increase above Rs 2 cr than 44AB is applicable & not 44AD. Thus in your case when your t/o again decreases from Rs2 Crore next year than you can very well opt for Presumptive Taxation