Applicability of tax audit

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ABHILASH KASLIWAL (Querist)
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16 May 2013 Hi,

I wanted to know whether in the case stated below tax audit u/s 44 AB is mandatory or not ??

Mr. X has a trading business with turnover of 50 lakhs. He maintains proper books of a/c. Mr. X wants to file his return of income in ITR-4 form (not in ITR-4S i.e. he is not opting for sec 44AD). He wants to show his Net Profit at 3 Lakhs (which is less than 8% of the turnover). Is Mr. X required to get his books of account audited ??

CA Vikas Acharya

CA Vikas Acharya (Expert)
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16 May 2013 yes as per 44AD even if you are not opting for the same, fi profit in business is less than 8% , audit is required.

ABHILASH KASLIWAL

ABHILASH KASLIWAL (Querist)
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16 May 2013 ok
but then why is ITR-4 Available for the above trader, he will obviously go for ITR-4S when audit has to be done

CA Vikas Acharya

CA Vikas Acharya (Expert)
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16 May 2013 audit will not be done if wants to show the profit more than 8% and is maintaining books as 44AD is optional.
but for ease of govt and assessee itr 4s is available.
though itr 4 useful in many other cases, like
where audit is mandatory due to exceeding limit of audit - 1crore/25laksh, itr-4 is for them.
who are professionals, commission agents. etc

Message likes : 1 times

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
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04 July 2013 Yes I agree with the experts

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