Compulsion of Tax audit under clause (d) & (e) of section 44AB r.w. 44AD & 44ADA

• October 20, 2020
• CA Chandan Agarwal's Office

Whether audit of accounts under clause (d) & (e) of section 44AB read with section 44AD & 44ADA of the IT Act is compulsory for an assessee?

It is pertinent to mention that out of the total 5 (Five) conditions of compulsory audit of accounts of certain persons carrying on business or profession, under section 44AB of Income Tax Act, 1961 (‘the IT Act’),  2 (two) conditions which mentioned in clause (d) & (e) of section 44AB of the IT Act, make the mandatory for an assessee to maintain the books of accounts and get them audited.

The said clause (d) of Section 44AB of the IT Act reads as under-

“carrying on the profession shall, if the profits or gains from the profession are deemed to be the profits and gains of such person under section 44ADA and he has claimed such income to be lower than the profits and gains so deemed to be the profits and gains of his profession and his income exceeds the maximum amount which is not chargeable to income tax in any previous year;

Read more on: https://taxguru.in/income-tax/compulsion-tax-audit-clause-d-e-of-section-44ab-r-w-section-44ad-section-44ada.html