Section 44ab

This query is : Resolved

sagar thacker (Querist)
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14 September 2012 Mr A is Running an Trading Concern Whose Turnover is Rs 15.00 Lacs, Which shows an Net Profit of Rs 1.30 Lacs, so Whether U/s 44AB Tax Audit Is Mandatory or Not.

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If in place of Mr A, If Mr A & B are running that Trading Concern In Partnership Than Whether Tax Audit Is Mandatory or Not

Dintakurthi Tirumala

Dintakurthi Tirumala (Expert)
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14 September 2012 As per section 44AB whose gross turnover/receipts exceeds Rs.60 lacs(incase of business) or Rs.15 lacs (incase of professional)should be done tax audit under section 44AB.

and who are liable to offer their income for tax purpose according to section 44AD or 44AE but offering lower income than prescribed such sections and such lower income is exceeds basic exemption limit tax audit according to section 44AB required otherwise not required.

I think your case comes under section 44AD and you net profit is more than 8% of turnover. i.e according to section 44AD. so you need not required tax audit u/s44AB.

For partnership also same provision applies but minimum 8% profit should be consider before remunaration to partners.

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