Is it necessary to do audit u/s 44AB if the profit is shown less than as reqd by 44ad
For Ex. A Partner ship firm having turnover of 42 lacs and loss of Rs.3 lacs
Is tax audit applicable in this case for A.y.2011-12?
1 Replies
kavitha
(studying final)
(830 Points)
Replied 03 January 2013
to my understanding, if the turnover or sales exceeds 40 lacs in general 44ab is applicable.
if the assessee is carrying in the business referred u/s 44AD, having income exceeding basic exemption limit and declaring income lower than prescribed u/s 44AD, sec 44AB is applicable.
8% of the turnover will be presumptive income - interest-salary-remuneartion to partners. the balance will be chargeable to tax.
so in ur case if u declared lower income then 44AB is applicable
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