Applicability of Section 44AA/44AB/44AD of Income Tax Act, 1961-2021

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CA Mayur J Sondagar | Aug 9, 2021 | Views 742646

Applicability of Section 44AA/44AB/44AD of Income Tax Act, 1961-2021

Applicability of Section 44AA/44AB/44AD of Income Tax Act, 1961-2021

Particular Amount Amount Amount Amount Amount
Total sales, Turnover or gross receipts up to Rs.25 lakh above Rs.25 lakh to Rs.1 crore above Rs.1 crore to Rs.2 crore above Rs.2 crore to Rs.10 crore above Rs.10 crore
44AA (Maintenance of accounts) Not Applicable Applicable Applicable Applicable Applicable
(As Turnover below 25 lakh) (Not Applicable if opt for 44AD) (Not Applicable if opt for 44AD) (Mandatory Application) (Mandatory Application)
44AB (Audit of accounts) Not Applicable Not Applicable Applicable Applicable Applicable
(As Turnover below 1 crore) (As Turnover below 1 crore) (Not Applicable if opt for 44AD) or  (Not Applicable if receipts & payments in cash * does not exceed 5 %) (Not Applicable if receipts & payments in cash * does not exceed 5 %) (Mandatory Application)
44AD (Presumptive Business Income) Can opt Can opt Can opt Not Applicable Not Applicable
(If Profit is equal to or higher than 8% / 6% #) (If Profit is equal to or higher than 8% / 6% #) (If Profit is equal to or higher than 8% / 6% #) (As Turnover exceeded 2 crore) (As Turnover exceeded 2 crore)
Assume 1.Assessee is engaged in Business (Not in Profession) 2.For the purpose of 44AD Assessee is not earning commission income nor in agency business

* The payment or receipt, by a cheque drawn on a bank or by a bank draft, which is not account payee, shall be deemed to be in cash

# 6% if total turnover or gross receipts received by account payee cheque or account payee bank draft or use of ECS through a bank account or other electronic mode as may be prescribed during previous year or on or before the due date specified u/s 139(1) (Rule 6ABBA prescribed other electronic mode as (a) Credit Card; (b) Debit Card; (c ) Net Banking; (d) IMPS; (e ) UPI; (f) RTGS; (g) NEFT; (h) BHIM)

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