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Presumptive Taxation 44 AD

Sudiesh (Audit Assistant) (527 Points)

15 June 2017

An individual business man having 95 lakh turnover and 5 lakh profit ,whether he is required to get his accounts audited??

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8 Replies

CA RAHUL GARG (PRACTICING PROFESSIONAL) (25 Points)
Replied 15 June 2017

yes he is liable for audit .

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toshika jain (4 Points)
Replied 15 June 2017

if the profits and gains from the business are deemed to be the profits and gains of such person under section 44AD and he has claimed such income to be lower than the profits and gains

CA RAHUL GARG (PRACTICING PROFESSIONAL) (25 Points)
Replied 17 June 2017

also liable for audit if profit lies in taxable limit

Sudiesh (Audit Assistant) (527 Points)
Replied 17 June 2017

Everyone is telling that if profit is below 8% of turnover required to Audit books. But no one is telling under which section and clause of Income Tax Act the Audit is applicable

CA RAHUL GARG (PRACTICING PROFESSIONAL) (25 Points)
Replied 17 June 2017

please read section 44ab

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Sudiesh (Audit Assistant) (527 Points)
Replied 18 June 2017

Originally posted by : rahul garg
	please read section 44ab

I didn't see anything in section 44AB.

section 44AB(e) it says Audit is required to a person coming under section 44AD(4).

and

Section 44AD(4) says that a person opted for 44AD for one year then he is required follow the same for the next 5 years. otherwise he required to get his accounts Audited U/s 44AB.

there is no mention of declaring lower profit in section 44AD and 44AB

CA RAHUL GARG (PRACTICING PROFESSIONAL) (25 Points)
Replied 22 June 2017

sec 44ab says that audit is required for person coming under section 44ad(4) having income exceed amount chargeable to income tax

CA RAHUL GARG (PRACTICING PROFESSIONAL) (25 Points)
Replied 22 June 2017

and sec 44ab also says audit required for person coming under section 44ad/44ada if they claim income lower than prescribed under such section and such income exceed maximum amount not chargeable to income tax.