04 August 2016
IF ANY ONE HAVE BUSINESS TURN OVER OF RS. 9000000 (90 LAKH) BUT HE HAVE NET PROFIT ONLY RS. 180000 (2%OF TURN OVER) SO QUESTION ARISE . IS AUDIT COMPULSORY ? . CAN HE FILE ITR 4 ?
04 August 2016
tax audit is compulsory in case If such person claims that the profits are lower than the profits computed under 44 AD and if his income exceeds the maximum amount not chargeable to tax in relevant year... In your case profit is less than 8% but it is less than the limit i. e. Rs 250000/- which is chargeable to tax...
04 August 2016
If your total income exceeds the maximum amount which is not chargeable to income-tax, then ......in your situation tax audit is applicable. If you show only Rs. 180,000 (2% on turnover) as your net profit, then you need to maintain books of account.
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