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Mandatory Tax Audit for Partnership Firm

Abir santra (Accountant) (42 Points)

29 May 2018

My client Government Civil contractor. F.Y ended 31.03.2018 Revenue RS 10 Lacs. Is Tax Audit compulsory? Is there any scope to submit IT return on 8% prusumtive Income basis?

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13 Replies

RAJA P M ("Do the Right Thing...!!!") (128101 Points)
Replied 29 May 2018

Yes... They can file without Tax Audit If shown profit above 8percentage then no need Tax Audit if filing u/s 44AD* or 44AA*...

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Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (185456 Points)
Replied 29 May 2018

Whether any work in progress?

The total receipts in the FY are totally Rs. 10 lakhs? or any amount due?

mohammad (article assistant) (123 Points)
Replied 29 May 2018

there is no any rule for for audit of partnership firm under partnership act 1932.

but as per section 44AB if any assessee(indidual or partnership firm) have a turnover of under the income tax 1932.

Partnership firms involved in profession with gross receipts of more than Rs.50 lakhs must complete a tax audit. Partnership firm involved in doing business must complete tax audit, if sales turnover exceeds Rs.2 crores.

Partnership firms involved in carrying on a specified profession would be required to maintain book of accounts as per Income Tax Act, if gross receipts is more than Rs.1.5 lakhs in all three previous years.

In case a partnership firm is receiving income profession (other than specified profession), book of accounts must be mandatorily maintained if income exceeds Rs.2.5 lakhs in any one of the three years previous year.

In case a partnership is involved in business, then maintenance of books of account is mandatory if total sales turnover or gross receipts exceed Rs.25 lakhs in any one of the three preceding years.

hope this satisfies your query.