Question ID : 43322

Section 44AD (4) introduced from AY 2017-18.

My queries pertaining to Section 44AD (4) introduced from AY 2017-18. As per the section, if a person declares profit for any of the 5 consecutive subsequent AY at lower than 8 percent after declaring profit AT the rate of 8% or 6%, he shall not be eligible to claim the benefit of the prov of sec 44AD for 5 subsequent AY. But my question is that if in any of such subsequent AY he declares profit at 8% (irrespective of the fact that accounts get audited due to Turnover exceeding the prescribed limit), can he still not be eligible to claim the benefit of the prov of sec 44AD for 5 subsequent AY. Let us illustrate the same with example: AY TO PROFIT % 44AD eligible or not 2017-18 45 lacs 8% taken 2018-19 215 lacs 8.1% Audited in view of the prescribed limit 2019-20 20 lacs 8% eligible or not 2020-21 0 lacs Other Income eligible or not Please clarify the requirement of Audit under above situation. Regards

Not eligible to opt for presumptive taxation.