Taxable Income From that Particular Source of Business. If, Your Computing 'A" Business and the Taxable Income From "A" Business + House Property + Capital Gains + Other Sources Etc. Then Deduction Chapter VIA Seperately available
for Sec. 44 AD Total Gross Turnover is Required to calucate Taxble Profit from that Businees
Gross Turnover...
IF GROSS TOTAL INCOME OF A INDIVIDUAL IS 2,50,000 (BUSINESS INCOME LESS THAN 8% OF GROSS TURNOVER) AND DEDUCTION UNDER CHAPTER VI A IS 100000 THEN WHETHER AUDIT U/S 44AB IS REQUIRED OR NOT
if Business turnover is below 60 lakhs (for A.Y.2012-13)and profit Ratio is below 8% and assessee wants to show profit below 8 % then he should get audited his accounts otherwise assessee should offer the profit for tax on 8% of gross turnover.
The Query arise from the following Provision:
Notwithstanding anything contained in the foregoing provisions of this section, an eligible assessee who claims that his profits and gains from the eligible business are lower than the profits and gains specified in sub-section (1) and whose total income exceeds the maximum amount which is not chargeable to income-tax, shall be required to keep and maintain such books of account and other documents as required under sub-section (2) of section 44AA and get them audited and furnish a report of such audit as required under section 44AB.
As Per this Not Required. But is a Drafting error. In Priciple It is Required
Thanks ragavan sir for guiding me.
This article on Tax Audit would give you a much better idea on how the turnover for the purpose of Tax Audit is computed:- https://www.charteredclub.com/tax-audit/
Dear Aman,
whether audit is required only if your gross turnover is less than 60 Lakhs and you want to claim profit at less than 8% of gross turnover.
For example:
If your gross turnover is Rs 10,00,000 and your actual profit is Rs 5,000. In such a case audit is required.y.
However, if your profit is equal to or more than 8% of Rs 10,00,000 ie Rs 80,000 or more, then no audit is required and you may pay taxes on 8% of the gross turnover only.
CAclubindia
