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Applicability of tax audit

Sneha Gupta (5 Points)

27 July 2018

An assessee has below income in the PY 2017-18

Income from Salary- 14 Lacs

Income from Retail Business - 2 Lacs

Loss from derivative - 15 Lacs

Income from Other source- 1 Lakh

Is tax audit applicable?

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5 Replies

Ahanak (Article) (281 Points)
Replied 27 July 2018

not applicable

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prosanta (student) (37 Points)
Replied 27 July 2018

as per your information tax audit not required. but if your retail business turnover cross 2 crore. then tax audit applicable.

Sneha Gupta (5 Points)
Replied 27 July 2018

Pls discuss with reference to section 44AD which mentions applicability of Tax audit u/s 44AB r/w section 44AD if the net profit(loss in this case) is less than 8% of the turnover from transactions.

prosanta (student) (37 Points)
Replied 27 July 2018

1. If net profit less then 8% or 6%(100% banking channels) of the turnover.
2. turnover above 2 crore.

In two condition are applicable for tax audit.