HELLO FRIENDS, PLS. TELL ME IF A PARTNERSHIP FIRM SUFFERS A LOSS IN THE PREVIOUS YEAR.
IS IT REQUIRED TO AUDIT OR NOT.
BECAUSE SEC 44AD STATES THAT IF PROFIT IS LESS THAN 8% IT IS REQUIRED TO BE AUDIT.
WHAT IN THE CASE OF THE LOSS.
PLS. HELP ME.
THANKS.
As profit is less than 8% because the firm has incurred a loss audit will be required.
44 AD (Presumptive taxation) states that if assessee claims that the profits & gains from the business are lower than (i.e less than 8%) the profits & gains in accordance with the pro. of 44AD & if income exceeds the maximum amount not chargeable to tax, audit is mendatory even in case of loss.
In your case if the T/O exceeds 60 Lacs and profit is less than 8% it is liable for audit.
for, further clarification plese refer the blog...
CAclubindia
