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tax audit

21 August 2018

Dear experts,
one of my client Individual doing manufacturing business filed ITR 3 for AY 17-18 turnover was Rs. 75.72. Now this year AY18-19 his aggregate receipt is 134.42. as per book of accounts his net profit is 8.77%.
is he liable for tax audit u/s 44AB?

or he may file ITR 3 without audit?

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8 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (177713 Points)
Replied 21 August 2018

Yes, he is liable for tax audit u/s 44AB; unless he wishes to declare the income u/s. 44AD of IT act.

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GST CENTRE (92 Points)
Replied 21 August 2018

I think tax audit turnover limit is 2cr.

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (177713 Points)
Replied 21 August 2018

If opted for sec. 44AD; otherwise u/s. 44AB its 1 Cr for business.

GST CENTRE (92 Points)
Replied 21 August 2018

since he is showing more than 8% profit.
is it mandatory for tax audit?

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (177713 Points)
Replied 21 August 2018

I repeat............. Yes, he is liable for tax audit u/s 44AB; unless he wishes to declare the income u/s. 44AD of IT act.

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CA Bhavik Soni (867 Points)
Replied 21 August 2018

limit for tax audit is 1 cr
limit for 44AD is 2 cr

RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 21 August 2018

@ GST CENTRE.,

If the Assessee will be file u/s 44ad then he can file as per above value of Turn Over & 8 percent profit. Bcoz, Sec 44ad limit is 2cr. So, No need Tax Audit if You will be file sec 44ad...

If can't opt sec 44AD then 44AB is applicable and Tax Audit is mandatory bcoz as per sec 44AB Tax Audit limit is 1cr...

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