IT IS A PARTNERSHIP FIRM
SALE- 70 LACS
NET LOSS- 20 LACS
IS TAX AUDIT COMPULASORY FOR THEM?
7 Replies
Suresh Kumar
(Account)
(403 Points)
Replied 18 September 2023
No Necessary. ..
Audit compulsory of sale above 1 Crores as per Section 44 AB of IT Act
RAJA P M
("Do the Right Thing...!!!")
(128091 Points)
Replied 18 September 2023
If the firm will file u/s 44AA then Tax Audit not required...
Eswar Reddy S
(CFO- at NHTF)
(58270 Points)
Replied 19 September 2023
Is it business or profession ?
Ashwin Kumar
(CA ipcc)
(449 Points)
Replied 20 September 2023
Raja sir ...isn't it necessary to audit under section 44AB if a firm has to claim loss ? I may be wrong please guide me l.
RAJA P M
("Do the Right Thing...!!!")
(128091 Points)
Replied 20 September 2023
| Originally posted by : Ashwin Kumar | ||
 |
Raja sir ...isn't it necessary to audit under section 44AB if a firm has to claim loss ? I may be wrong please guide me l. |  |
No... You're not wrong.
In case of Loss, Since there is no income. therefor it does not exceed the maximum amount not chargeable to tax and so the second condition mandating tax audit u/s 44AB r/w sec 44AD is not satisfied and therefore the Assessee is not required to get the Accounts Audited u/s 44AB.
Also the reply based on the Query like Business...
In case if it's profession then the Reply is vary...
Here Rightly asked By Mr. Easwar Reddy
Suresh Kumar
(Account)
(403 Points)
Replied 20 September 2023
If turnover is more than Rs. 1 Crore( in case of goods ) and Rs. 50 Lakhs in case of profession. And the entity is claiming loss in its business.
In above case i think Audit u/s 44AB is necessary to claim loss.
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