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TAX audit Limit and conditions

10 April 2020

Query :

Sales : 12Lakh

profit : 3000

if I opt ITR-3 then do I need to furnish my tax audit report?

Note: it's a partnership firm.

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9 Replies

RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 10 April 2020

No...
But, ITR will be file u/s 44AA...

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ASHUTOSH KUMAR (75 Points)
Replied 10 April 2020

Would I receive the notice ....as I am showing profit below 6%??

RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 10 April 2020

Are You filed Your ITR or asking to file...?

Better to ask Your query correctly with details...

Also read my reply as above and check out Your details...

ASHUTOSH KUMAR (75 Points)
Replied 10 April 2020

The ITR is yet to be filed ....I have read you reply correctly but had a doubt... because I got a opinion from a CA friend he said you could have receive the notice if you show your profit below 6% .... whether you are filing your return under any section.....

RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 10 April 2020

Well...
As per sec 44AB Tax Audit limit is Rs 1cr. As per Your turn over Tax audit not applicable if You are filing with sec 44AA...

As per Your advice (ask the details correctly from him)

In case You file the return u/s 44AD and You show the profit less than prescribed limit then Tax Audit applicable as per sec 44ad.

Note : Profit Limit of sec 44ad is 6%/8%

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Shivam RC (Student) (23683 Points)
Replied 10 April 2020

As per the Provision of Section 44AB of the Income Tax Act 1961, Income Tax Audit is applicable only when your Turnover in Business exceeds Rs. 1 crore or Gross Receipts in Profession exceeds Rs. 50 lakhs.

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