If a partnership firm has book profit which is 5% of Turnover and net loss in profit & Profit Appropriation Account. Turnover is 40,00,000/-.
Is it liable for Tax audit..?
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TAX AUDIT U/S 44AD
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Yes, under section 44AD(4) and (5)
If it will be book loss then also audit needed?
Loss also means less than 8% or 6% profit of turnover
| Originally posted by : Samrat Karar | ||
 |
If it will be book loss then also audit needed? |  |
(a partnership firm has book profit which is 5% of Turnover) as You said the 5% will be shown u/s 44AD then audit is applicable based on less than priscribed limit of profit...
Also sec 44AD says "No need books of accounts" then what you mean Book profit...? it's not reasonable.
Better to ask with details...
Better to read the following :
Sec 44AD (5) :
(5) Notwithstanding anything contained in the foregoing provisions of this section, an eligible assessee to whom the provisions of sub-section (4) are applicable and whose total income exceeds the maximum amount which is not chargeable to income-tax, shall be required to keep and maintain such books of account and other documents as required under sub-section (2) of section 44AA and get them audited and furnish a report of such audit as required under section 44AB.]
If TO is less than 1 cr and total income is below the taxable limits, audit is not required.
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