Audit Compulsory or not For Partnership Firm
Page no : 2
virag
(Account and Tax consultant)
(115 Points)
Replied 20 September 2022
SATHVEDHANARAYANAN
(PROPRIETOR)
(44 Points)
Replied 20 September 2022
1. FIRST to consider, whether the assessee opts for -to declare his income under presemptive basis (44AD), If opted, then the minimum 8% income of the Turnover to be declared. The tax audit report is compulsory if the income shown is below 8%, only , reitrerating , only when the asesee opted to declare his income u.s.44AD.
2. Second Senario, If the assessee does not opts for u/s. 44AD( Presumptive Basis) and the T.O. is also below 1 crore, he need not gets his books audited u/s. 44AB but nevertheless since in the above case, the T.O. is above 10 Lakhs, he has to maintain the books of accounts u.s. 44AA only , no concern for the declaration of below 8%.
Divya jain
(31 Points)
Replied 12 November 2022
Income Tax Return Audit For Proprietorship Firms is mandatory for the propreitor and companies to file the income tax return above the limit of 5 lakhs income.
ramesh
(Accounts Officer)
(25 Points)
Replied 12 July 2023
Dear All,
A Partership firm with a turnover <1 Crore:
a) Filed return under presumptive profit scheme for the 4 consecutive years.
b) Now, in 5th year would like to opt out of presumptive profit scheme. Turnover is <1Cr. Maintaining books of accounts and showing profits <8%.
As explained by CA Aakarsh Jain, In 5th Year, Complusary audit applicable.
From 6th Year, Is compulsory audit applicable..?
Please advise.
Sanjay Suryavanshi
(Service)
(0 Points)
Replied 18 October 2023
Partnership firm is required to undergo a tax audit if its sales, turnover, or gross receipts exceed Rs. 1 crore in a financial year.
If a taxpayer is required to undergo a tax audit but fails to do so, the penalty can be the lower of the following:
0.5% of the total sales, turnover, or gross receipts
OR
Rs 1,50,000
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