Partnership Firm audit applicability

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varun bhakkad (Querist)
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26 April 2025 A partnership firm having turnover of 5100000 for FY 2024-2025. Net Profit after partner salary and partner interest is 9000.Total cash receipt are 25 % of total receipts and total cash payment are 6.65% of total payments. For last 5 years tax audit was done under 44AB(e) of Income Tax Act. Will tax audit be applicable for FY 2024-2025?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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26 April 2025 Yes, as the sec. 44AB(e) is applicable w.r.t sec. 44AD(4) &(5) IT act... which states ..." he shall not be eligible to claim the benefit of the provisions of this section for five assessment years subsequent to the assessment year relevant to the previous year in which the profit has not been declared in accordance with the provisions of sub-section (1)." .... ( in aggregate tax audit applicable for six years )