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audit for composite dealer

12 July 2019

hello sir I m a composite dealer... I
deals in electronics goods... this year as per balance sheet my net profit comes 760000...which attract large amount of income tax... should I go for audit to reduce income tax ?? I didnt get income audit before...

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4 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (182282 Points)
Replied 13 July 2019

Its wrong concept.... that audit reduces tax liability...... Rather it confirms the tax liability as per the books!!

Get a professional, and check if sec. 44AD of the act can help.

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ANKUR (ARTICLE) (95 Points)
Replied 13 July 2019

what was your turnover.. if it is upto 95 lacs go for 44ad as tax libility would be same under 44ab (audit) and 44ad

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Gaurav Ghai (58 Points)
Replied 13 July 2019

how section 44AD can be helpful?

ANKUR (ARTICLE) (95 Points)
Replied 13 July 2019

you will be able to avail 44ad for next 5 year irrespective of your turnover exceeding 1 crore till 2 crore subject to 8% , 6% profit declaration.. that is not required to keep books of account and audit thereof.