44ab

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CA Arpit Jain Rajawat (Querist)

29 October 2013 Is Audit compulsory under section 44AB for bussiness having income less than 8% or loss making company....??????

Nikhil Kaushik

Nikhil Kaushik (Expert)

30 October 2013 eligible assessee under 44AD claiming profit less than 8% have to get the audit done to claim lower profit provided that the income is more than the exempted limit.

Tax audit is not based on the loss or gains but on the turnover of the company. If it beyond Rs 1 cr, tax audit shall apply.

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CA Pallav Singhania

CA Pallav Singhania (Expert)

30 October 2013 In case assessee claims that he has earned income lower than specified percentage i.e 8 percent and such income is more than maximum amount not chargeable to tax, U/s. 44AD(5) and 44AA(2)(iv), mandates him to maintain books of accounts and other documents as specified u/s 44AA, get them audited from the accountant and furnish report as required u/s 44AB.

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