Tax audit

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

23 August 2013 my turnover in f.y. 2012-13 is 45 lac and profit is 1,85,000/- till today i can not fill the return. my ques is "it is any need to make a tax audit or not". if yes, than in which sec we make audit.
pls help it's argent
thank you

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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23 August 2013 Please mentioned the nature of business or professional,

Under normal provision for business Rs.1 crore turnover limit & Rs.25 lakhs for professional not required the tax audit u/s.44AB for ay-13-14

how ever incase business covered under sec.44AD. need to declare the 8% presumptive profit otherwise audit is compulsory. since given case profit is less than 8% if your business comes under sec.44AD, then audit will apply

Querist : Anonymous

Querist : Anonymous (Querist)

23 August 2013 i am dealer of 1 company. my net profit is below 2 lac i.e rs.1,85,000/-and no other income. it is compulsory to make audit.

thank you

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CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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23 August 2013 Provide nature of business

Querist : Anonymous

Querist : Anonymous (Querist)

25 August 2013 natur of busines- wholesaler
my income is below taxable income.

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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25 August 2013 you are covered under sec.44AD. since the profit is less than 8%, audit is compulsory

Querist : Anonymous

Querist : Anonymous (Querist)

31 August 2013 but i consult a advocate, he says that in my case, it is not compulsory to make audit. b'cos total profit is below rs.2 lac limit.
pls help for this issue what i can do.
thank you

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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31 August 2013 Tax audit application not based on profit & turnover. your business is covered under sec.44AD, and if you want to declare the profit less than 8%, audit is compulsory. in case you have not opt sec.44AD and you can go for normal provision and file the return without audit since the turnover is less than Rs. 1 crore

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C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
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07 September 2013 Since your profit is less than 8% of gross turnover you have to get your accounts audited u/s 44AB as you are covered u/s 44AD. If you show Net profit of 8% then no audit is required but to show lower profit than 8% you can do so by getting your accounts audited and submitting the report to the ITO or concerned officer.