CA Bhargav Nathwani
(CA in Practice)
(8307 Points)
Replied 17 June 2017
No Audit is required if individual/huf pays minimum 8% of T/O under u/s 44AD.
There is nothing like that if total income is above Rs 2.50 Lakh then audit under 44AB is required, presumtive income means no need of Audit.
Further would llike to clarify that as per sec 44AB if T/O is > 1 cr. then Audit under 44AB is required irrespective of total income.
So many misconfusions are created by this group. Pl rectify me if anything is incorrect.
Naveen
(CA_STUDENT)
(164 Points)
Replied 17 June 2017
he has to declare his profit at 8% of his turnover, 95lks*8/100=7.6 lkhs , where he was asking that can he show at 4lkhs .He must declare his profit atleast 7.6lkhs to escape from Tax Audit.
Sudiesh
(Audit Assistant)
(527 Points)
Replied 17 June 2017
CA Bhargav Nathwani
(CA in Practice)
(8307 Points)
Replied 20 June 2017
| Originally posted by : Sudiesh | ||
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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 |
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It's prima-faci condition of presumtive income tax u/s 44AD, presumtive profit = 8% or more of sales. If person not ful-fil this condition he has to autometically fall under u/s 44AA & 44AB [Sec 44AA - Complusory maintance of books of account & Sec 44AB complusory Audit from CA]
Section 44AD is relief section for non-maintance of books of account for small turnover businesses limited to individual & huf only.
Udit Singh
(Articled assistant)
(38 Points)
Replied 25 June 2017
Udit Singh
(Articled assistant)
(38 Points)
Replied 25 June 2017
CAclubindia
