Applicability of 44ab
This query is : Resolved
29 July 2011
Dear all
A partnership firm (retail trader) is having turnovr of of Rs.30,00,000 and net loss of Rs.150000 total income of Firm is Rs.-150000 (loss) Whether audit u/s 4AB is required ?
though profit declared is lessthan 8% on turnover Total income is not more than exemption limit hence i belive that audit u/s 44AB not required Kindly give your valuable opinion
Thanking you
yours faithfully
A partnership firm (retail trader) is having turnovr of of Rs.30,00,000 and net loss of Rs.150000 total income of Firm is Rs.-150000 (loss) Whether audit u/s 4AB is required ?
though profit declared is lessthan 8% on turnover Total income is not more than exemption limit hence i belive that audit u/s 44AB not required Kindly give your valuable opinion
Thanking you
yours faithfully
29 July 2011
The issue raised is squarely covered under section 44AD read with 44AB of the Income tax Act,1961. Since the partnership firm shows a loss, one of the conditions in section 44AD(5) is not satisfied and hence 44AB audit is not attracted.
30 July 2011
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