Source: ICAI MCQ Booklet
Why can’t the ans to the 1st MCQ be option (c)?
Although receipts in cash do not exceed 5% of total receipts but the payments do exceed the limit of 5%.Hence, the limit of 5 cr for the purpose of audit shall not apply. But, assessee can opt for presumptive taxation as limit therein is 2cr. Consequently, assessee won’t be required to maintain books of accounts.
Hello,
Section 44AD doesn’t apply to companies. Hence in this question the company assessee is not eligible for 44AD and therefore 1 crore turnover to be checked
Applicability criteria didn’t strike me.🙈
Thank You!