AN ASSESSEE WAS DOING DURING THE YEAR 2008-09 36,00,000 AND HE WAS OFFERED NET PROFIT 61,000 N.P. RATIO IS 1.69 HE IS COVERED UNDER SECTION 44AB OR NOT
TAX AUDIT MEANS ONLY TURNOVER ABOVE 40LAKHS OR TURNOVER ABOVE 40LAKHS BUT N.P. RATIO IS BELOW 5% WHAT IS CORRECT. PLEASE TELL
19 September 2009
In case of wholesale business if the turnover is Rs. 40 lacs then the audit is mandatory whether you declare the profit or loss is immaterial. In case of Retail trade if the net income declared is below 5% then the audit u/s. 44AB is compulsory.
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