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Audit

RAJ KUMAR (FINANCE MANAGER) (1393 Points)

06 September 2012

HELLO FRIENDS, MY CLIENT IS A PARTNERSHIP FIRM DURING THE PY 2011-12 THEY DECLARED A LOSS OF RS. 3,00,000.

PLS. TELL ME WHETHER AUDIT IS COMPULSORY BECAUSE THE PROFIT IS LESS THAN 8%.

PLS. HELP ME.

THANKS.

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6 Replies

U S Sharma (glidor@gmail.com) (21056 Points)
Replied 06 September 2012

as loss its not covered under 44AD, but for compulsary tax audit u/s 44AB, the turnover should exceed 60L

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Manjunatha M K (Manager - Accounts) (318 Points)
Replied 06 September 2012

Yes Audit is Compulsory as per Sec 44AB

RAJ KUMAR (FINANCE MANAGER) (1393 Points)
Replied 07 September 2012

TURNOVER IS ONLY 30 LAKHS BUT THERE IS A LOSS.

NOW PLS. TELL AUDIT IS APPLICABLE BEACAUSE PROFIT IS LESS THAN 8% OR NOT.

THANKS.

Manjunatha M K (Manager - Accounts) (318 Points)
Replied 07 September 2012

Is your Profit is 8% or more ? - In your case no.

Then Sec 44AB(d) will get attracted, and you should get your books of accounts audited.

Sec 44AB(d): carrying on the business shall, if the profits and gains from the business are deemed to be the profits and gains of such person under section 44AD and he has claimed such income to be lower than the profits and gains so deemed to be the profits and gains of his business and his income exceeds the maximum amount which is not chargeable to income-tax in any previous year,