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Sec.44AB audit

30 May 2017

What if individual having business turnover Rs. 50 lakh and declare profit lower than 8% in AY.2017-18 then is he liable to audit u/s .44AB ?

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4 Replies

PRABIR PAUL (*****Accountant***** Never insult to any person for any kind of lack of knowledge or misread.) (1443 Points)
Replied 30 May 2017

Yes in this case the person is liable for audit..

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Amit Jimudiya (47 Points)
Replied 30 May 2017

But if his total income not exceeds exemption limit then also audit required ?

PRABIR PAUL (*****Accountant***** Never insult to any person for any kind of lack of knowledge or misread.) (1443 Points)
Replied 30 May 2017

yes if he declare the income below 8% then he will be liable person to get his book of accounts audited.

1 Like

Amit Jimudiya (47 Points)
Replied 30 May 2017

but that was old provision sec.44AD(4) which stated that assesses may declare profit lower than 8% but for that he has to maintain books and required to audit if income exceeds basic exemption limit during the year.

And now amended provision Sec.44AD(4) introduced. And new sec.44AB states that if assessee falls under 44AD(4) and income exceeds basic exemption limit during the year then audit required.

So in my case, assesses has turnover less than 1 cr and also not falls under 44AD(4) and income also not exceeds basic exemption limit Still audit required.? Plz solve my query .