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Tax audit

Ganesh Kumar Khemka (c.a final and COMPANY SECRETARY) (123 Points)

27 November 2011

Helo frends

any body tel me regarding condition of tax audit and if there is a any exception than also tel me with example.pl. also tel me sec. 44AB and 44AD

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Devendra (Chartered Accountant) (4775 Points)
Replied 27 November 2011

44AB : If the Turnover of Business exceeds 60 lakhs during the previous year, then the assesse is required to get his accounts audited by a Practising Chartered Accountant u/s 44AB. Also in case of Professioanl, if the Turnover of exceeds 15 lakhs during the previous year, then the assesse is required to get his accounts audited by a Practising Chartered Accountant u/s 44AB.

Following are the persons coming under 'Professionals'

1) Doctor

2) Architecy

3) Lawyer

4) Interior Designer

5) Company Seretary

6) Chartered Accountant

44AD : If the Turnover of the Business is less then Rs. 60 Lakhs, then the Assessee is not required to maintain books of accounts and also is not liable to get his accounts audited from a Chartered Accountant. But this section does not aplly to Professionals.

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Vikas (CA) (1135 Points)
Replied 27 November 2011

I think you should refer to the books....friend try reading it, you will get a proper understanding....and then if u have any doubt then ask....

Devendra (Chartered Accountant) (4775 Points)
Replied 27 November 2011

In case of Business, Chartered Accountant has to give his Report in Form 3CB whereas in case of Professioanls, he has to give his Report in Form 3CA.

Regards,

Devendra K

GOPAL AGGARWAL (DOING NOTHING) (1339 Points)
Replied 27 November 2011

As per scetion 44AB whose turnover exceeds Rs. 60 lacs in the case of business and 15 lacs in the case of profession are the requirements for audit.

BUT WHERE TURNOVER OF THE ASSEESSEE IS LESS THAN 60 LACS AND HE MUST HAVE TO SHOW PROFIT @ 8% AND THE ASSESEE IS NOT REUIRED TO MAINTAIN BOOKS OF ACCOUNTS. IF ASSEESSEE WANTS TO SHOW THE PROFIT LESS THAN 8% AND HIS TOTAL INCOME EXCEEDS THE MINIMUM AMOUNT WHICH IS NOT CHARGEABLE TO TAX THEN HE REQUIRED TO GET HIS ACCOUNT AUDITED.

BUT IF HIS PROFIT IS LESS THAN 8% AND HIS TOTAL INCOME DOESNOT EXCEEDS THE MINIMUM AMOUNT WHICH IS NOT CHARGEABLE TO TAX. THEN HE IS NOT REQUIRED TO GET HIS ACCOUNT AUDITED

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Ganesh Kumar Khemka (c.a final and COMPANY SECRETARY) (123 Points)
Replied 27 November 2011

gopal aggarwal ji pl. less than 8 % ki ek do example se samja do plzzzzzz

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GOPAL AGGARWAL (DOING NOTHING) (1339 Points)
Replied 28 November 2011

Ganesh if you have VG sir's Dt then you can study is much details about Scetion 44AD. if you donot have then u can read following

1. suppose ur sale is 25,00,000/- and your net profit is more than 2,00,000 (i.e. more than 8% of sale ) no need to get the accounts audited.

2. suppose ur sale is 25,00,000/- and your net profit is more than 1,80,000 (i.e. less than 8% of sale ) now you need to get the account audited aswell as maintain complete booksof A/c.

3. suppose ur sale is 25,00,000/- and your net profit is more than 1,40,000 * (i.e. less than 8% of sale ) now you need njot to get the account audited as well as maintain complete booksof A/c. But their are lot of confusions among the mebers whether Audit is required or not. In my city all CA's are doing Audit

*Not only net profit but total income should be less than the minimum slab i.e (1.6 / 1.9/ 2.5 lacs)