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Tax audit of partnership firm

18 January 2021

whether a partnership firm is liable to have tax audit if the firm have a loss or gross receipt is below 1 crore or 5 crore as the case may be..?

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8 Replies

CA. Sourav Sarkar (Chartered Accountant ) (24583 Points)
Replied 18 January 2021

Even if firm have loss and of turnover exceeds 1 crores now 5 crores rupees rupees then it is liable for tax audit but if turnover doesn't exceed the exemption limit then there is no required for tax audit

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hansabeegam hansabeegam (11 Points)
Replied 18 January 2021

To carry forward loss of a firm needed an audit report..?

1 Like

Kapadia Pravin (17259 Points)
Replied 18 January 2021

Above turnover limits, tax audit is mandatory under 44AB (irrespective of profit or loss)

1 Like

Krishna Chaudhary (Accountant) (4531 Points)
Replied 19 January 2021

Audit is mandatory if you show profit less than 8% of turnover, whatever your turnover is

5 Like

Kapadia Pravin (17259 Points)
Replied 19 January 2021

Profit under 8% , tax audit is mandatory in case of 44Ad cases

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debora M (BUSINESS DEVELOPMENT MANAGER) (1697 Points)
Replied 19 January 2021

As per the Income Tax Act, 1961, Tax Audit of partnership firm is mandatory if the turnover/ gross receipt exceeds Rupees One Crore in case of business and Rupees twenty five laces in case of profession. It is highly recommended that every partnership firm should go for audit of his accounts.

1 Like