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Tax audit proprietorship firm

Ajeet (Accountant) (64 Points)

11 August 2013

My query is if a proprietorship firm is having interest income of say 2 Lacs, House Property income of 5 Lacs and Business income of 2.5 Lacs with Sales Turnover of 60 Lacs for AY 2013-14 and the accounts are regularly audited. Will there be any requirement to file Form 3CD by way of efiling?

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9 Replies

Devendra (Chartered Accountant) (4775 Points)
Replied 12 August 2013

No need to file Form 3CD in the above case.

RAJESH (Chartered Accountant) (61 Points)
Replied 12 August 2013

Tax audit is applicable. You need to file form 3CD

CA BHAVESH MEHTA (self employed) (67 Points)
Replied 12 August 2013

in case of those firm heaving Turn over less then One cr , then either they have option for Net profit to be calulated @ 8% on Total turn over U/s 44AD OR if the net profit is less then 8% then Tax audit U/s 44AB is apply and 3cd has to be filed through E- filing

CA LOVELY ARORA (C.A. B.Com (H) Graduate) (2151 Points)
Replied 12 August 2013

Dear Ajeet,

Till now, you were required to get your accounts audited as your turnover was above the limit (Rs. 60 lakhs), but in A.Y. 13-14, as your turnover doesn't exceed Rs. 1 crore and i don't think that you are opting for Sec. 44AD... 8% of Turnover... then in that case, you are not required to get your accounts audited and also e-filing of Tax Audit (as no tax audit).
If your sales turnover/receipt exceeds Rs. 1 crore for A.Y. 13-14, then only you are required to get your accounts audited.

Best Regards,
CA Lovely Arora
ca.lovelyarora @ gmail.com

Ramesh (proprietor) (21 Points)
Replied 12 August 2013

Your turnover Rs.60 lakh profit is Rs.2.5 lakh it is under 8% so difenatly filed. Audit report By R.Ramesh.B.Com Irugur

CA LOVELY ARORA (C.A. B.Com (H) Graduate) (2151 Points)
Replied 13 August 2013

Dear Ramesh and all other friends, Its not compulsory for an assessee to go for Sec. 44AD presumptive taxation.. it's optional.. then how can you say that it's net profit is below 8%... so, he is required to get his accounts audited.

A person may go for normal taxation provisions... he didn't mention that he is under 44AD... then how you all conclude that??

Kindly answer.

CA PARTH SHAH (In Practice) (1951 Points)
Replied 25 October 2014

As per amendment n section 44AD in AY 13-14, all the buisness carried out by Individuals, HUF and partnershi firms are now covered under this section except professionals and 44AE - transportation business and commission agents. Hence if the t/o is under 1 cr, then it is now mandatory to show 8 % of Net Profit by all the relevant assesees. In the above case if we assume that the assessee, being a propeitory firm, falls under 44AD, then he has to show minimum net Profit @ 8 % of Turnover of 60,00,000 excluding other incomes i.e 4,80,000. Hence the assessee falls under section 44AB since the net profit is below 8% of the T/oand accordingly file form 3CD