Tax Audit Applicability: 44AB, 44AD, 44ADA explained with Examples; Controversial issues resolved

Navigating the complexities of tax audit requirements can be challenging, especially when determining the applicability of various sections. Can you opt for Section 44AD? When is an audit mandatory? This video provides a comprehensive guide to the provisions of Sections 44AB, 44AD, and 44ADA, shedding light on these frequently misunderstood topics.

The video breaks down the key aspects of each section, discusses the circumstances under which a tax audit becomes compulsory, and address some of the controversial issues surrounding these provisions. Real-life examples are be provided to help clarify the nuances and ensure you have a clear understanding of the rules.

[chandravijayshah]

3CD Due Date is 30.09.2024 and ITR Due Date is 31.10.2024. In 3CD Clause 8a, suppose it is mentioned, say, 115BAC, but Old Regime may be followed in ITR, if Old Regime is found beneficial that time, i.e., after 30.09.2024. So, this Clause reporting and ITR may result into contadiction qua this option. Please gice your feedback.

[gauravpandey]

Hello Sir
First of all very thank you for such a informative video.
I have one doubt, Assessee has turnover of Rs 1.8 crores in FY 22-23, opted 44AD and declared income @ 8% of turnover.
In FY 23-24, the same assessee had turnover of 3.2 Crores, total cash receipts and payments is less than 5%. He has an income of 8% of turnover in FY 23-24. Is tax audit compulsorily applicable to him or he can simply file the buisness ITR without getting tax audit done. Plz advice

[Nish_a_nt]

Sir In case 44AD(4) Applicable and INCOME exceeds Basic Exemption Limit then 44AB apply. My Question is word INCOME is 'Gross Total Income' or 'Total Income' after Ch VIA deduction??

[vinodkumarsharma]

A partnership firm has turnover of Rs 6 Cr from Business activity in the P, Y & its aggregate receipts & payments in cash does not exceed 5 % . If the Income declared is @ 5 % of total turnover, would Tax Audit would be required or can opt for normal filling ? The firm had availed 44AD in the fin year 2018-19 .

[hirenkatariwala]

In FY 23-24 Turnover below 1 cr 44 AD opted 6% shows
In FY 24-25 Turnover 1.30 cr 44AD not opted but shows profit 6.5% ( 5% criteria satisfied)
Can assessee opt 44 AD in FY 25-26 if turnover less than 1 cr and 5% criteria fulfill ???