10 March 2016
sir, if i declare profit of a partnership firm less than 8 % (not opting 44AD) . is it mandatory to audit of accounts in such situation as rate of taxation on profit is 30% flat rate & even a single ruppee is taxable for firms.
10 March 2016
Dear As per section 44ad minimum profit to be declared is 8% but in case of firm you are entitled to get deduction of partner salary and interest from the 8% profit. In case if you want to show profit below the above then its Mandatory to get the accounts audited by a CA.
11 March 2016
Audit under section 44AD is applicable if you opt for it. If you not opt for it and naturally turnover is less than tax audit threshold, it is not mandatory to get the accounts audited by a CA.
11 March 2016
Dear Expert, the query relates to that the person want to show profit below 8% of turnover . the turnover is below 1cr. Now to show profit below 8% audit is mandatory. Pls refer section 44ad and 44ab for more clarity .
12 March 2016
Dear Ankur please once again go through section 44AD . It is clearly mentioned there that this scheme is optional. If the assessee opt for it and then show profit less than 8% then only audit under section 44AB is applicable.
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