Upgrade and Save: Get 10% OFF on CAclubindia Pro Subscription! Use Code: SAVE10 Subscribe Now!

Audit required or not???

27 April 2021

dear colleagues🙏
ek proprietorship firm hai uska turnover FY 20-21 me 22 lac(approx hai) or uska net profit hi 4% hai yani 88000/- toh usse audit ki need rhegi kya?

regards,

Reply
Follow
Share

10 Replies

CA. Sourav Sarkar (Chartered Accountant ) (24583 Points)
Replied 27 April 2021

No audit is not applicable

1 Like

Upgrade to CAclubindia Pro. Subscribe Now!

saurabh sawlani (2166 Points)
Replied 27 April 2021

Sourav sir, please pura clarify kre koi section ya koi case.... kyunki muje isme kafi confusion hai... kafi alag alag views bhi mil rhe hai

1 Like

digvijay singh (20 Points)
Replied 27 April 2021

My view is audit required because under sec 44ab condition follow

1 Like

CA. Sourav Sarkar (Chartered Accountant ) (24583 Points)
Replied 27 April 2021

If you're opting for presumptive taxation u/s 44AD and turnover is less than 2 crores rupees and profit is 8% on turnover then Audit is not required.. Whether you have opted for presumptive taxation??

1 Like

digvijay singh (20 Points)
Replied 27 April 2021

Thanks sir

1 Like

Upgrade to CAclubindia Pro. Subscribe Now!

Lotus Agrawal (Practice) (1361 Points)
Replied 27 April 2021

As per my opinion Audit is required only if

Turnover exceeds Rs. 1 crore OR

Turnover exceeds Rs. 2 crore in case the assessee has opted for presumptive taxation under 44AD OR

IF OPTED for 44AD, assessee has shown profit less then 8% or 6% as the case may be.

but if the turnover is less than one crore and not opted for 44AD then no audit is required. But in this case Full balance sheet and profit and loss account shall be prepared and ITR-3 should be filed.

This is my view. Other views are welcomed (if any).

1 Like