As per 44AB, If turnover exceeds Rs 1 Cr. Then person (Firm) liable to get tax audit u/s 44AB.
Also a firm can adopt itself under 44AD by showing profit of 8% of total/gross turnover. By adopting this there is no liability on company to get tax audit u/s 44AB.
Also firm who claims that his profits and gains from the eligible business are lower than the 8% and whose total income exceeds the maximum amount which is not chargeable to income-tax, shall be required to get them audited and furnish a report of such audit as required under section 44AB.
So my question is A firm having total turnover:- 50 Lacs Net Profit :- Nil or Loss
Now whether the firm is liable to get its books audited under sec 44AB????
02 September 2015
1. Turnover is Rs. 50 lakhs. Condition as in 44AB(a) is not satified. - No need of tax audit under that section.
2. Net profit is Nil/Loss. Condition as in 44AD(5) is NOT satisfied. No need of tax audit U/s 44AB(d). Conversely if the partnership firm's net profit is Re.1 or more, condition as in 44AD(5) satisfies, meaning there by accounts are to be audited u/s 44AB(d).
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