tax audit applicability

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Dear Expert,

An Asseessee has a TO of 90L, his net pft <6/8%,Is he required to get his BOA audited under 44AB? without opting for 44AD can he still file ITR-3 WITHOUT AUDIT REPORT?

If so under which clause of 44AB?

As there is an amendment in clause e where previously it use to be business and now it is profession from 1/04/2017.

³²Every person,-

(a) carrying on business shall, if his total sales, turnover or gross receipts, as the case may be, in business exceed or exceeds one crore rupees in any previous year ; or

(b) carrying on profession shall, if his gross receipts in profession exceed ³³[fifty] lakh rupees in any previous year; or

(c) carrying on the business shall, if the profits and gains from the business are deemed to be the profits and gains of such person under section 44AE or section 44BB or section 44BBB, as the case may be, and he has claimed his income to be lower than the profits or gains so deemed to be the profits and gains of his business, as the case may be, in any previous year; or

(d) carrying on the ³⁴[profession] shall, if the profits and gains from the ³⁴[profession] are deemed to be the profits and gains of such person under ³⁵[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 ³⁴[profession] and his income exceeds the maximum amount which is not chargeable to income-tax in any ³⁶[previous year; or]

³⁷[(e) carrying on the business shall, if the provisions of sub-section (4) of section 44AD are applicable in his case and his income exceeds the maximum amount which is not chargeable to income-tax in any previous year,]

34. Sub. for "business" by Act No. 28 of 2016, (w.e.f. 1-4-2017).

35. Substituted for "section 44AD" by Act No. 28 of 2016, (w.e.f. 1-4-2017)

AI Summary

Tax audit applicability: presumptive taxation allows avoiding audit when declared profits meet prescribed thresholds and compliance conditions.
An assessee with turnover of ninety lakh and declared net profits below presumptive percentages faces a tax audit requirement under section 44AB unless the assessee opts into the presumptive taxation scheme and declares profits at the prescribed rates; the 2016 amendment replaced certain references from business to profession effective 1 April 2017. GST registration and annual return obligations may also trigger bookkeeping reconciliation and a separate audit requirement, and obtaining a tax audit can provide documentary protection during assessments.