Tax audit required or not?

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

26 July 2017 Hi Experts

I am confused regarding applicability of Section 44AB and 44AD.

My client is a Partnership firm with turnover of Rs. 1.53 crore for FY 2016-2017 and Profit shown is Rs. 16.00 Lacs.

Whether Tax audit is required in above case? if yes, please support with relevant section.

I shall be highly thankful to you.

Sunny

RAJA P M

RAJA P M (Expert)
Follow

26 July 2017 http://www.charteredclub.com/tax-audit/

http://www.charteredclub.com/section-44ad/

RAJA P M

RAJA P M (Expert)
Follow

26 July 2017 Simply understands.....
You can file U/s. 44AB with tax audit you can show the profit as per books of accounts....
You can file U/s. 44AD without tax audit (8%) you can show the profit as per law above 8%....

44AB limit - Rs. 1Crore - (You can show profit as any amount)
44AD limit - Rs. 2Crore - (You show the profit 8% is Must)

Message likes : 1 times

Upgrade to CAclubindia Pro. Subscribe Now!

Studentsca

Studentsca (Expert)
Follow

26 July 2017 Tax audit is required or not depends upon whether you want to opt for 44AD or not.

If you opt for 44AD then no tax audit is required.

If you do not opt for 44 AD then you will be required to do tax audit under section 44AB.

Message likes : 1 times