Indudhar (Tax Advocate) (427 Points)
27 July 2013Hello Friends,
One of my client has maintained books of accounts having below details;
Sales TO -60 lakhs
Net Profit- Rs 185000/-
Other Income- Rs 45000/-
Whether his books need to be audited?
please help me..
SAGAR
(ARTICLED ASSISTANCE)
(236 Points)
Replied 27 July 2013
Dear Indudhar,
As per Sec.44AD of Income tax act wher the assessee turnover is lesser then 1crore, then taxable income is 8% of the turnover or more as dicleared by him.
as per above, the assessee income is 60 Lakhs, so 8% of 60 Lakhs is 4.8 Lakhs. but actual income dicleared is 1.85 Lakhs which is Less then the minimum limit. Hence Tax audit is compulsory
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