05 April 2016
but sir acording section 44AB if business turnover is is greater than 1 crore , audit is compulsory see this article http://www.charteredclub.com/tax-audit/
05 April 2016
As per Sub Section (5) of section 44AD-
Notwithstanding anything contained in this section
an eligible assessee who claims that his profits and gains from the eligible business are lower than the profits and gains specified in sub-section (1) of Section 44AD. whose total income exceeds the maximum amount which is not chargeable to income tax. shall be required to keep and maintain such books of account and other documents as required under sub-section (2) of section 44AA. get them audited and furnish a report of such audit as required under section 44AB
05 April 2016
If the assessee claims that his total income is lower than the income deemed under section 44AD and his total income is chargeable to tax, then he shall have to get his accounts audited under section 44AB and furnish the prescribed report within prescribed time.
Thus as per provisions of Section 44AD r/w Section 44AB person who satisfy all of the following conditions is required to get his books of accounts audited under Section 44AB.
Person is an eligible assessee. Eligible Assessee means- An individual. Hindu undivided family. A partnership firm, but not a limited liability partnership firm. who is a resident. Person is carrying on an eligible business. Eligible Business means- Any business except the business of plying, hiring or leasing goods carriages referred to in section 44AE. whose total turnover or gross receipts in the previous year does not exceed an amount of one crore rupees. The profits of an assessee engaged in eligible business under the head ‘Profits and gains from business and profession less than 8% of the total turnover of the assessee i.e. less than the profits deemed under this section.
Total Income of person is also more than the maximum amount which is not chargeable to tax.
05 April 2016
in case of if income does not exceed total amount chargeable to income tax (income less than basic exemption limit) or firm is making losses, no need to get accounts audited or maintain the accounts.
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