partnership audit
P Ravindra (24 Points)
03 June 2018
what is the turnover audit limit for partnership firm
3 Replies
Rajan Bhanushali
(31 Points)
Replied 03 June 2018
Compulsory limit for partnership firm is 2 cr u/s 44AB.if u don't want to get audit your accounts then show profit @ 8 of turnover u/s 44AD upto 2 cr.once your turnover cross 2 cr then you must have to audit your accounts.
CA Sunil Kumar
(Chartered Accountant)
(4524 Points)
Replied 03 June 2018
Limit u/s 44AB
Rs. 1 Crore. It means an assessee need to be audited under Sec.44AB if his annual gross turnover/receipts in business exceeds Rs. 1 crore. It means the limit of Tax Audit u/s 44AB is Rs. 1 Cr. for Business in FY 2017-18 / AY 2018-19.
Limit u/s 44AD
Businesses, whose annual gross turnover/receipt does not exceeds Rs. 2 Crore are eligible for this scheme.
Sec 44AD provides special provision for computing profits and gains of business on presumptive basis. You need not to maintain proper accounting. Your net income is estimated to be @ 8% of your gross receipt/turnover. From F.Y. 2016-17, net income is calculated as @ 6% of gross receipts are received through digital mode of payments and @ 8% of gross receipts are received in cash.
Rs. 1 Crore. It means an assessee need to be audited under Sec.44AB if his annual gross turnover/receipts in business exceeds Rs. 1 crore. It means the limit of Tax Audit u/s 44AB is Rs. 1 Cr. for Business in FY 2017-18 / AY 2018-19.
Limit u/s 44AD
Businesses, whose annual gross turnover/receipt does not exceeds Rs. 2 Crore are eligible for this scheme.
Sec 44AD provides special provision for computing profits and gains of business on presumptive basis. You need not to maintain proper accounting. Your net income is estimated to be @ 8% of your gross receipt/turnover. From F.Y. 2016-17, net income is calculated as @ 6% of gross receipts are received through digital mode of payments and @ 8% of gross receipts are received in cash.
CA RAKESH JESWANI
(3)
(165 Points)
Replied 03 June 2018
For better tax planning, it is suggestible to do the Audit.
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