22 February 2012
I have a query with respect to section 44AD .
My client is a partnership firm and had made a loss for the financial year 2010-11. The profit before partners' salary and interest on capital is working out to around 4% only.
My query is 1. Whether the firm is subject to tax audit since the profit percentage is less than 8% 2. Whether the loss making firm should comply Sec 44AD (8% Profit before partners' salary and interest on capital)
Guest
Guest
(Expert)
22 February 2012
In case your client want to file return disclosing 4% income then tax audit is necessary.
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