A and co firm audited their books of acoounts as per sec 44AB of income tax act, their tournover exceeds 60 lacs in financial year 2010-2011, if their tournover is 1000000 in next financial year, is it compulsory to do tax audit as per 44 AB . i mean is it necessay to continue tax audit, based on compulsory tax audit in any preceeding financial year?
7 Replies
NIKITA
(CA )
(302 Points)
Replied 22 August 2011
No need if d turnover does nt exceed rs.60 lakh dis year.
Sanat kumar
(Chartered Accountant)
(265 Points)
Replied 22 August 2011
Hi Chaitanya
You need not to get it tax audited if the turnover or gross receipts of business does'nt exceed the prescribed limit.
Section 44AB doesn't prescribe to do tax audit based on previous years compulsory tax audit.
CA YOGESH GARG GMG PLYWOODS
(BUSINESS OF PLYWOOD and PARTNER IN GUPTA & MALHOTRA CHARTERED ACCOUNTANTS)
(248 Points)
Replied 22 August 2011
Agree with Mr. Sanat kumar
CA Saiyum khan
(Practicing CA)
(690 Points)
Replied 22 August 2011
TAx Audit u/s 44AB is not compulsary provided the declared profit is more than 8% of Turnover.
Karthikeyan
(CA Final)
(174 Points)
Replied 22 August 2011
Hi Chaitanya,
To add above comments find the paragraph tax audit Sec 44AB:
Every person, - (a) Carrying on business shall, if his total sales, turnover or gross receipts, as the case may be, in business exceed or exceeds Sixty lakh rupees in any previous year* , or
(b) Carrying on profession shall, if his gross receipts in profession exceed ten lakh rupees in any previous year*, or
(c) Carrying on the business shall, if the profits and gains from the business are deemed to be the profits and gains of such person under section 44AD or section 44AE or section 44AF, as the case may be, and he has claimed his income to be lower than the profits or gains so deemed to be the profits and gains of his business, as the case may be, in any previous year, get his accounts of such previous year audited by an accountant before the specified date and furnished by that date the report of such audit in the prescribed form duly signed and verified by such accountant and setting forth such particulars as may be prescribed
*previous year (Financial year)
It clearly talks about previous year not referring to any previous years before that..
Hope this clears
Karthikeyan
devang
(CA FINAL article )
(181 Points)
Replied 23 August 2011
Tax Audit u/s 44AB is not compulsary provided the declared profit is more than 8% of Turnover. if ur t/o not exceeds limit.
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