Audit u/s 44 ab for turnover below rs. 1 crore

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

24 February 2014 My turnover is Rs. 90 lacs for A.Y. 2013-14 and I want to show my income at Rs. 1,90,000. Is is compulsory to maintain books of accounts and get is audit also. Please also tell me what to do if my total income is Rs. 2,10,000. Here in both cases, my net profit comes below 8% as required u/s 44AD.

Sandeep Dharar

Sandeep Dharar (Expert)
Follow

24 February 2014 If ur Turnover crosses Rs. 100 Lakh(i.e., 1 crore) then Tax Audit u/s 44AB applies. In ur case no need 4 Tax Audit.

Ganeshbabu K

Ganeshbabu K (Expert)
Follow

24 February 2014 You mandatorily required to maintain books of accouns and get ur books audited by chartered accountant
.
Actually tax audit 44ab applies where total turnover of business exceeds 100 lakhs

If ur turnover is less than 100 lakhs u should offer income to tax dept as per sec 44AD Which is atleast 8percent of turnover ;in case if u want to offer less than this percentage u mandatorily required to maintain books as per sec 44AA and required to get ur books audited by charteted accountant
.
In ur case no audit required if u offer atleast 8percentage on turnover which is 90lakhs*8%=7.2lakhs
.
So if u offer income equal to or more than 7.2 lakhs no audit required where as u would like to offer 1.9lakhs or 2.1 lakhs which is less than prescribed 7.2 lakhs so to offer this income u mandatory to maintain books and get ur books audited by chartered accountant

Upgrade to CAclubindia Pro. Subscribe Now!

Naresh Dharia F.C.A.

Naresh Dharia F.C.A. (Expert)
Follow

26 February 2014 In case the income proposed for is less than 8% of the Turnover....i.e. deemed profit under section 44 AD ...AUDIT IS COMPULSORY. ..
HENCE TO MAINTAIN BOOKS OF ACCOUNTS
OK

Querist : Anonymous

Querist : Anonymous (Querist)

27 February 2014 Here pls. Keep in mind that total income is also a matter for section 44ab.