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Audit

vinod kumar pal (Tax Consultant) (415 Points)

18 August 2018

Respected Experts if individual person Total Turnover is Rs. 1 crore 15 lac and his net profit of P&L is 10% then he is compulsory for Income Tax Audit or not
please clarify
thanks

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9 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (161998 Points)
Replied 18 August 2018

Unless sec. 44AD applied........ ie income eligible and declared under presumptive section .....

Tax audit madatory.....

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FAHEEM AKRAM (293 Points)
Replied 18 August 2018

how to figure out while filing ITR3 if I have GST detail......how to know Department I have GST ?

Abhishek5g (CA) (167 Points)
Replied 18 August 2018

audit is applicable since turnover exceeds 1 crore.. 44AB is applicable

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (161998 Points)
Replied 18 August 2018

Originally posted by : FAHEEM AKRAM
	how to figure out while filing ITR3 if I have GST detail......how to know Department I have GST ?

Everything is cross connected, including your bank account, demate account, investments (AIR reporting !!) etc., just based on PAN. Its not only through ITR3, but even through ITR1, department can verify whether you have GSTIN, its transaction and other details, in case it is required to be verified.

RAJA P M ("Do the Right Thing...!!!") (127601 Points)
Replied 18 August 2018

Yes... I agreed to Mr Dhirajlal Rambhia Sir views...

@ Vinod Kumar.,

If the above said business and Assessee is eligible under sec 44AD then he can go to opt sec 44AD and Can be shown 8 percent or above 8 percent profit without audit...

In case you can't opt 44ad then Tax Audit applicable for the above Turn Over

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vinod kumar pal (Tax Consultant) (415 Points)
Replied 19 August 2018

Thanks to all experts
If I have file ITR 3 and select the option sec 44AD then Audit is not compulsory
I have Already Advance Tax Deposit Rs 65000

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RAJA P M ("Do the Right Thing...!!!") (127601 Points)
Replied 19 August 2018

Originally posted by : vinod kumar pal
	Thanks to all expertsIf I have file ITR 3 and select the option sec 44AD then Audit is not compulsoryI have Already Advance Tax Deposit Rs 65000

No... ITR 3 is not Suitable for the above Query... ITR 4 is suitable...

But., We don't know Your business and Assessee is eligible or not u/s 44AD...

So, You only tell the details...

MANISH KUMAR KOTHARI (PRACTISING CHARTERED ACCOUNTAN) (34 Points)
Replied 22 August 2018

Even if your net profit is 10% of turnover, you are not covered under section 44AD i,e taxability of income on presumptive basis. You have to get your accounts audited under section 44AB as your gross receipts/turnover exceeded the threshhold limit of Rs. 1 crore.