Rajesh Poddar (Chartered Accountant) (321 Points)
25 April 2016Dear All,
Client is having turnover of Rs. 20 Lakhs for FY 13-14, Net Profit is 5 % i.e Rs. 100000/- and Salary income Rs.5 Lakhs, Housing loan Interest Loss is Rs. (150000), Interst income of Rs. 5000/- Gross Total Income is Rs. 400000/- Is audit compulsory ? Does it invite compulsory scrutiny ?
Please Reply
CA Rajesh Poddar
Harendra Kumar
(Tax Advisor )
(1326 Points)
Replied 25 April 2016
But Sir, specified profession or Business?
Kaushik Joshi
(Practising Chartered Accountant)
(1527 Points)
Replied 25 April 2016
Ruchi
(CA)
(1410 Points)
Replied 25 April 2016
If the business is such that it falls u/s 44ad then declaring profit less than 8% invites tax audit.
Rajesh Poddar
(Chartered Accountant)
(321 Points)
Replied 26 April 2016
Business of tours and travel
Kaushik Joshi
(Practising Chartered Accountant)
(1527 Points)
Replied 26 April 2016
Ajay
(na)
(55 Points)
Replied 28 April 2016
My startup having 20lakh turnover and my profit comes around 4% as income , then as per you NO AUDIT u/s44AD, but my CA saying below 8% i must have to get my accounts audited??
Kaushik Joshi
(Practising Chartered Accountant)
(1527 Points)
Replied 29 April 2016
Ajay
(na)
(55 Points)
Replied 29 April 2016
So far by reading of bate act wide sec.44AD , I found that the expression AND is used in both conditions of tax audit, that's why a question in my mind if it was either or case why AND used rather 8% OR total income greater than non taxable limit must have been used.
I hope you getting my point.pls refer bare act.
CA. Roopali Kadam
(Jobs on assignment basis.)
(1459 Points)
Replied 29 April 2016
an eligible assessee who claims that his profits and gains from the eligible business
are lower than 8% and
whose total income exceeds the maximum amount which is not chargeable to income-tax,
shall be required
to keep and maintain such books of account and other documents as required under sub-section (2) of section 44AA
and
get them audited and furnish a report of such audit as required under section 44AB.
Above is extract from bare act,
& it's clear if profit <8%, audit is required, unless total income is below exemption slab
Ajay Singh
(Accountant)
(22 Points)
Replied 30 October 2017
is audit required when we maintain books of account but firm profit less then 8% and our turnover less then 1cr.(firm is Tour and travel)
S.R.D.
(PROP.)
(62 Points)
Replied 23 July 2018
Ankita Chachan
(practitioner)
(548 Points)
Replied 28 August 2018
If u r profit is less than 8 % and the income exceeds the maximum amount which is not chargeable to tax then one needs to get his accounts audited.
CAclubindia
