Applicability of tax audit
This query is : Resolved
ABHILASH KASLIWAL
(Querist)
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 ??
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
(Expert)
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
(Querist)
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
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
(Expert)
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
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
04 July 2013
Yes I agree with the experts
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