Tax audit in itr3 or itr 5

388 views 5 replies
1 is tax audit is neccessry if profit below 8% in partnership nd propritership firm?
2 if net profit on commision income below 8% in itr 3 or 5 audit necessry?
Replies (5)
Yes, Tax Audit is mandatory if the profit is below @ 8 % in the case of cash transactions
and if the profit below @ 6% in the case of other than cash transaction

1. Tax Audit mandatory if profit falls below 6% or 8% as explained above by CA Karatanshuji. 2. Commission does not fall u/s 44AD therefore one cannot file ITR-4. In that case if it is a Proprietary firm then one has to file ITR-3 & if it is a Partnership Firm then ITR-5.

Sir is the the profit is below @ 8 % in the case of cash transactions 
and if the profit below @ 6% in the case of other than cash transaction is in case of 44 ad or in all cases?
1) In case of Partnership firm :
If profit is below 8%and 6% in case if transaction other than cash then taxaudit is compalsary.
If tax audit is done then ITR 5 and if 44ad then ITR 4.
2) In case of proprietership
If profit is below 8%and 6% in case if transaction other than cash then taxaudit is compalsary.
If tax audit is done then ITR 3and if 44AD Opt then ITR 4

Note : In both case if income is earn in the nature of commission or brokerage then 44AD is not available.
In case of commission in 194c itr3 is compulsory and if yes then profit is to be less than 250000 for not doing audit. if profit is above 250000 in itr3 then audit is compulsory required? plz guide

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
25 June 2026
AUDIT MANAGER

JDAS & ASSOCIATES

New Delhi

CA

View Details
Company
Featured 15 June 2026
Senior Auditor

N. Dhawan & Co

New Delhi

CA Inter

View Details
Company
20 June 2026
Chartered Accountant

ANV & Company

New Delhi

CA

View Details
Company
ARTICLESHIP 28 June 2026
Article Assistant

Sharma Chetan And Company

Gurgaon

CA Inter

View Details
Company
ARTICLESHIP 18 June 2026
Article Assistance

RB KESHRI & CO.

Mumbai

CA Inter

View Details
Company
25 June 2026
Accounts & Taxation Executive

Dindukurthy & Associates

Hyderabad

MBA

View Details
Company
10 June 2026
Senior Account Executive

JDS Advisory LLP

Ahmedabad

CA Inter

View Details
Company
29 June 2026
Accountant (Finance & Compliance)

TRIEYEZ

Kolkata

CA

View Details