Section 44AD

Discouragement of Cash Transactions under Various Laws in India

Income Tax - In order to curb cash transactions and to move into the digital world, Government of India has introduced Demonetization of old notes of Rs. 500 & Rs. 1000 from 8th November 2016 in order to control the parallel world of black market. Further, Government has also initiated various steps through various laws in India including [&hellip...

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Applicable TAR Clause – 44AB(a) Or 44AB(e) For Turnover Between Rs. 1cr – 2cr

Income Tax - Which Clause Of Tax Audit Is Applicable – 44AB(a) OR 44AB(e) – When Business Turnover, Sales, Gross Receipts Etc. Is Over Rs. 1 Cr. But Up to Rs. 2 Cr. INTRODUCTION :- The section 44AB of the Income Tax Act, 1961 (“Act”) imposes liability for mandatory tax audit when any of the condition mentioned in […]...

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FAQ’s on issues in filing of Tax Audit Report Form 3CA-CD/3CB-CD

Income Tax - Question 1: What are the prerequisites for filing of Form 3CA- Form 3CD/Form 3CB-Form 3CD? Resolution: The following are the prerequisites for filing of Form 3CA-3CD/3CB-3CD -Taxpayer and CA are registered on the e-Filing portal with valid user ID and password -Status of PAN of taxpayer and CA is active – Taxpayer has assigned CA [&...

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Exhaustive Criteria for Tax Audit : Normal & Presumptive

Income Tax - The tax audit provisions are contained in section 44AB clause (a) to Clause (e). Section 44AD provides for beneficial provision of presumptive taxation of declaring net profit of 6%/8% of the turnover of the business and get out of the compulsory tax audit provisions under certain circumstances. This scheme of presumptive taxation, sectio...

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Summary of Section 44AD of Income Tax Act 1961 with latest amendments

Income Tax - If the turnover of the eligible assessee from eligible business is equal to or less than 2 crores ; then profit @ 8 % or more shall be deemed to be his profit if claimed to have been earned  in the return....

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Draft Revised ‘Guidance Note on Tax Audit under section 44AB

Income Tax - Exposure Draft of Revised ‘Guidance Note on Tax Audit under section 44AB of Income-tax Act, 1961’ is issued by ICAI Direct Taxes Committee ...

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13 Reasons why due date of ITR & Tax Audit should be extended- Representation

Income Tax - Representation for extension of Due date of Income Tax Returns And Audit Report For A.Y. 2021-2022 (F.Y.  2020-2021. It is requested that The due date of furnishing of Return of Income for the Assessment Year 2021-22, should be extended to 28th February, 2022....

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Income Tax Portal – Erratic & Irresponsible approach towards IT Infrastructure

Income Tax - CAAS has made a representation to Union Finance Minister and brought to her attention the Flaws in New Income Tax Portal which are still exist even after almost 3 years. They claimed that the front end of the new portal shows brainless design with various missing drop down menus...

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CPC advisory on applicability of Tax Audit to business and profession

Income Tax - Dear Taxpayer, As per the section 44AB of Income Tax Act, the books of accounts for the relevant previous year are required to be audited by a Chartered Accountant and the audit report has to be electronically filed prior to or along with the return of income before the due date. In order to assist to […]...

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Audit U/s. 44ADA not to be counted for Tax Audit Limit Calculation: ICAI

Income Tax - ICAI decided to exclude audit conducted under section 44ADA of Income-tax Act, 1961 for reckoning the specified number of tax audit assignments...

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ITAT allows Benefit to assessee for availing section 44AD for non-maintaining books of account

Sarabjeet Singh Vs ITO (ITAT Amritsar) - Sarabjeet Singh Vs ITO (ITAT Amritsar) The brief fact of the case that the assessee is a trader &filed his return u/s 139(1) by taking the benefit of presumptive scheme u/s 44AD of the Act. During the F.Y. 2010-11 related A.Y. 2011-12 the turnover was 15,50,000/- & declared total income of R...

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Commission income not falls under presumptive taxation scheme

Euro Home Vs DCIT (ITAT Chennai) - Euro Home Vs DCIT (ITAT Chennai) CIT(A) held that the provisions of Sec.44AD would not apply to commission income and the rental income received would be assessed under Income from House Property. Accordingly, the appeal was dismissed against which the assessee is in further appeal before us. ITAT f...

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Cash Deposit & withdrawals of equal amounts – ITAT allows telescoping benefit

Sanjeet Kanwar Vs ITO (ITAT Amritsar) - AO made additions on ground that cash deposited in bank account was more than total turnover declared by assessee, since assessee furnished bank statements which showed that there were deposits and withdrawals of almost equal amounts and AO failed to give any findings regarding said withdrawals, ass...

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ITAT taxed Income of Small Businessman at a presumptive rate – Section 44AD

Mahesh K. Bhutiya Vs ITO (ITAT Rajkot) - Mahesh K. Bhutiya Vs ITO (ITAT Rajkot) We have noted that the Revenue has accepted the income returned by the assessee from his business by applying 5% profit rate to his turnover of Rs. 20,85,825/-. It is evident therefore that it is an accepted fact that the assessee is a very small businessman an...

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No invocation of sec 68 if assessee filed ITR u/s 44AD without maintaining books of account

Narendra Chandubhai Rafaliya Vs ITO (ITAT Ahmedabad) - Existence of books of account maintained by assessee was a condition precedent for making addition under section 68. Where assessee had not maintained books of account, there was no legal scope to invoke provisions of section 68 and as such, addition made on such premise was to be deleted....

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CBDT notifies more modes of e-payments; 6DD limit reduced to ₹ 10000

Notification No. 08/2020-Income-Tax [G.S.R. 56(E)] - (29/01/2020) - Notification No. 8/2020-Income-Tax- CBDT has notified Other electronic modes by inserting New Income TAx Rule 6ABBA. It also amended marginal heading of rule 6DD and in rule 6DD for the words ‘account payee bank draft, exceeds twenty thousand rupees’, the words, figures and letters ̵...

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CBDT extends return of Income / ITR Due date to 30.11.2014

F.No.153/53/2014-TPL (Pt.I) - (26/09/2014) - In compliance to the judgments of various High Courts and after considering the representations received for extension of the due date, the Board, in exercise of its power conferred by section 119 of the Act, has extended the 'due-date' for furnishing return of income from 30th September, 2014 to 30...

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CBDT Notifies new Form 3CA, 3CB & 3CD – Format of Tax Audit Report Revised

Notification No. 33/2014-Income Tax - (25/07/2014) - Notification No. 33/2014-Income Tax S.O. 1902 (E).. In exercise of the powers conferred by section 295 read with section 44AB of the Income Tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby makes the following rules further to amend the Income Tax Rules, 1962, namely:- 1. (1)...

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Recent Posts in "Section 44AD"

ITAT allows Benefit to assessee for availing section 44AD for non-maintaining books of account

Sarabjeet Singh Vs ITO (ITAT Amritsar)

Sarabjeet Singh Vs ITO (ITAT Amritsar) The brief fact of the case that the assessee is a trader &filed his return u/s 139(1) by taking the benefit of presumptive scheme u/s 44AD of the Act. During the F.Y. 2010-11 related A.Y. 2011-12 the turnover was 15,50,000/- & declared total income of Rs.1,40,880/-. The notice u/s […]...

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Commission income not falls under presumptive taxation scheme

Euro Home Vs DCIT (ITAT Chennai)

Euro Home Vs DCIT (ITAT Chennai) CIT(A) held that the provisions of Sec.44AD would not apply to commission income and the rental income received would be assessed under Income from House Property. Accordingly, the appeal was dismissed against which the assessee is in further appeal before us. ITAT find that commission income would not com...

Read More

Cash Deposit & withdrawals of equal amounts – ITAT allows telescoping benefit

Sanjeet Kanwar Vs ITO (ITAT Amritsar)

AO made additions on ground that cash deposited in bank account was more than total turnover declared by assessee, since assessee furnished bank statements which showed that there were deposits and withdrawals of almost equal amounts and AO failed to give any findings regarding said withdrawals, assessee deserved to get benefit of telesco...

Read More

Discouragement of Cash Transactions under Various Laws in India

In order to curb cash transactions and to move into the digital world, Government of India has introduced Demonetization of old notes of Rs. 500 & Rs. 1000 from 8th November 2016 in order to control the parallel world of black market. Further, Government has also initiated various steps through various laws in India including [&hellip...

Read More
Posted Under: Income Tax | ,

Applicable TAR Clause – 44AB(a) Or 44AB(e) For Turnover Between Rs. 1cr – 2cr

Which Clause Of Tax Audit Is Applicable – 44AB(a) OR 44AB(e) – When Business Turnover, Sales, Gross Receipts Etc. Is Over Rs. 1 Cr. But Up to Rs. 2 Cr. INTRODUCTION :- The section 44AB of the Income Tax Act, 1961 (“Act”) imposes liability for mandatory tax audit when any of the condition mentioned in […]...

Read More
Posted Under: Income Tax | ,

FAQ’s on issues in filing of Tax Audit Report Form 3CA-CD/3CB-CD

Question 1: What are the prerequisites for filing of Form 3CA- Form 3CD/Form 3CB-Form 3CD? Resolution: The following are the prerequisites for filing of Form 3CA-3CD/3CB-3CD -Taxpayer and CA are registered on the e-Filing portal with valid user ID and password -Status of PAN of taxpayer and CA is active – Taxpayer has assigned CA [&...

Read More
Posted Under: Income Tax | ,

Exhaustive Criteria for Tax Audit : Normal & Presumptive

The tax audit provisions are contained in section 44AB clause (a) to Clause (e). Section 44AD provides for beneficial provision of presumptive taxation of declaring net profit of 6%/8% of the turnover of the business and get out of the compulsory tax audit provisions under certain circumstances. This scheme of presumptive taxation, sectio...

Read More
Posted Under: Income Tax | ,

Summary of Section 44AD of Income Tax Act 1961 with latest amendments

If the turnover of the eligible assessee from eligible business is equal to or less than 2 crores ; then profit @ 8 % or more shall be deemed to be his profit if claimed to have been earned  in the return....

Read More
Posted Under: Income Tax |

All about Clause 44 of FORM 3CD of Tax Audit Report

Now a days, Clause 44 of 3CD become ‘Buzz word’ for every professional. Everyone is doing its interpretation considering the aspect of reconciliation with indirect tax records. Form 3CD of Tax Audit Report (TAR) was amended in July 2018 by Notification No. 33/2018 dated 20.07.2018  to incorporate the Clause 44 on reporting o...

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Posted Under: Income Tax |

Analysis of Clause 44 of Tax Audit Report in Form 3CD

History of Clause 44 of Form 3CD (Tax Audit Report) Income Tax notification No. 33/2018 dated 20th July 2018 came into force on 20th August 2018 Any tax audit report which was required to be filed on or after 20.08.2018 requires reporting of total expenditure as per clause 44 of the Form 3CD. Deferred the […]...

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Posted Under: Income Tax | ,

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