Tax Audit Liability with Reference to 5 Years Restriction Under Section 44AD

• October 24, 2019
• CA Chandan Agarwal's Office

Tax Audit Liability With Reference To 5 Years’ Restriction Under Section 44AD

Introduction: The section 44AD of the Income Tax Act contains special provisions for computing profits and gains of a business on presumptive basis. It is applicable in respect of eligible business / (es) carried by an eligible assessee.

According to this section, the profits and gains from eligible businesses carried by an eligible assessee are required to be computed at least at the rate of 8% / 6% of the total turnover / gross receipts. Whenever the business profits are computed in accordance with this section, the assessee is not required to mandatorily maintain books of accounts u/s. 44AA and also not to get them audited u/s. 44AB.

Read more on: https://taxguru.in/income-tax/tax-audit-liability-reference-5-years-restriction-section-44ad.html