06 August 2013
Under presumptive tax , Small Assessee (T.O below Tax Audit Limit) has to declare at least 8% of his Turnover (T.O) as profit and there is no Audit requirement. Now suppose a Firm has no Sale/Income in the previous year and has incurred a loss after booking some of it expenditure. Is it required to be Audited as loss reported is below 8% as prescribed in 44AD? In another case suppose that firm has T.o of Rs 100 and after booking all its exps , it has loss for Income tax. Now will it be covered under 44AD or 44AB?
06 August 2013
The firm is required to get its accounts audited in both the cases since the firm is not fulfilling the conditions of Section 44AD (show 8% of turnover as income).
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