Rahul asked 1 year ago
For professionals whose Gross receipts < 50 lakhs and who claim their income to be less than 50%, is it mandatory to do tax audits. If yes, then has the government indirectly mandated to claim 50% income to avoid the hassle of tax audit? Thank you.
1 Answers
Ravi Staff answered 12 months ago
Yes Sec 44ADA states, For professionals , where gross receipts doesn’t exceed 50 lakhs, they can pay tax on presumptive profit of 50% under 44ADA .If they claim income to be less than 50 % & income exceeds the maximum amount which is not chargeable to income-tax in any previous year then Tax Audit will become Applicable.