| Originally posted by : Shreya Aggarwal | ||
 |
The turnover of a proprietorship firm is6.00 Lacs and the net profit is25,000 i.e. less than 8%. Is tax audit necessary? Will tax audit be necessary if net loss is there is such a case? |
 |
In this case provision of Tax Audit is not applicable if total income on the presumptive basis does not exceed the maximum amount not chargebale to tax. It means if 8% of turnover exceeds Rs.1,60,000 / Rs.180000 as the case may be in that case TAX Audit would be applicable if the declare profit is less than 8% or even in case of loss.
CAclubindia
