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itr for professionals

11 August 2017

hello experts please advice me regarding doubt of itr to file for professionals.
whether audit liability will arise under following comdition.
gross receipt rs. 1000000
other income rs. 10000
net profit rs. 350000
whether audit liability will arise if i will file itr 3 and not filing return under presumptive manner.

plz expert advice me regarding this doubt.

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23 Replies

CA Prashak Kumar Goyal (Pratice) (192 Points)
Replied 11 August 2017

Yes...audit liability will airise if youb

CA Prashak Kumar Goyal (Pratice) (192 Points)
Replied 11 August 2017

Yes...audit liability will airise if you don't file return under presumptive scheme.

Suresh Parmar (147 Points)
Replied 11 August 2017

okkay.. thank you prakash sir...

RAMESH D MODI (Proprietor) (4864 Points)
Replied 11 August 2017

yes audit is required

Suresh Parmar (147 Points)
Replied 11 August 2017

thank you ramesh sir...

1 Like

Poltu Ghosh (Job) (1865 Points)
Replied 12 August 2017

Since you are not opting for presumptive scheme the turnover limit for compulsory tax audit is Rs 50 lakh. In your case it is Rs. 10 lakh so tax audit is not required. More so over since you are not opting for presumptive scheme the criteria to show 50 percent of your gross receipts does not arise. So in this front also tax audit does not apply. Thus if you file ITR 3 you are not liable for tax audit. Your case is covered u/s 44AB (b) and not u/s 44AB (d). So you are not subject to compulsory tax audit.

CA Prashak Kumar Goyal (Pratice) (192 Points)
Replied 12 August 2017

As per the provision of section 44AB every person carrying on the profess

CA Prashak Kumar Goyal (Pratice) (192 Points)
Replied 12 August 2017

As modified by finance act,2016

If the profit or gain from profession

CA Prashak Kumar Goyal (Pratice) (192 Points)
Replied 12 August 2017

As modified by finance act,2016

If the profit or gain from profession is lower then the profit or gain deemed to be profit and gain from profession under section 44ADA and his total income exceed maximum amount which is not chargeable to tax in any previous year then he is req. to get his account audited.

1 Like

Suresh Parmar (147 Points)
Replied 12 August 2017

thank you ghosh sir...

Poltu Ghosh (Job) (1865 Points)
Replied 12 August 2017

You are most welcome

Suresh Parmar (147 Points)
Replied 12 August 2017

prakash sir, thank you for you kind reply but my question is i dont want to file return under 44ada, i want to file in itr 3 now whether ques. of audit arise or not.

RAMESH D MODI (Proprietor) (4864 Points)
Replied 12 August 2017

yes audit required as per my view.

neeraj gupta (1138 Points)
Replied 12 August 2017

The audit is required in my view as well.

You have declared income from profession below 50% of turnover from profession.

Your income is above 2.5L the max exempt from tax.

For your reference the 44AB (d) is what applies to your case.

Audit of accounts of certain persons carrying on business or profession.

44AB. 32Every person,—

(d) carrying on the 34[profession] shall, if the profits and gains from the 34[profession] are deemed to be the profits and gains of such person under 35[section 44ADA] and he has claimed such income to be lower than the profits and gains so deemed to be the profits and gains of his 34[profession] and his income exceeds the maximum amount which is not chargeable to income-tax in any 36[previous year; or]