Applicability of tax audit

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

09 September 2017 Dear Experts.
In FY 2016-17 our turnover is below 1 crore also Net profit is below 8% pls clarify :- in this scenario whether tax audit will be applicable or not considering the proprietary concern?

Thanks
Mukesh kumar

RAJA P M

RAJA P M (Expert)
Follow

09 September 2017 Tax Audit is not applicable. But, Books of accounts is mandatory in above said case....

Ashiwini Ballodia

Ashiwini Ballodia (Expert)
Follow

09 September 2017 If you profit exceeds maximum amount not chargeable to tax i.e Rs 2,50,000 than you will be liable for tax audit because your profit is less than 8%

RAJA P M

RAJA P M (Expert)
Follow

09 September 2017 Dear Ashiwini Ji., I can't understand this one... please give me any clarifications please

Ashiwini Ballodia

Ashiwini Ballodia (Expert)
Follow

09 September 2017 Raja P M Ji, Audit is mandatory if the profit is claimed below presumptive income & the income exceeds maximum amount not chargable to tax As the question was asked that the profit is below 8% i.e. below presumptive income, so it is not covered by 44AD. So you have to see the provision of 44AB

Ashiwini Ballodia

Ashiwini Ballodia (Expert)
Follow

09 September 2017 If turnover is below 1cr & NP is above 8% than audit is not reqd.

Querist : Anonymous

Querist : Anonymous (Querist)

09 September 2017 Dear sir,
Pls let me know the relevant section clause which stated that if if income exceeding not chargeable to tax then no tax audit will be applicable even if NP is below 8%

Ashiwini Ballodia

Ashiwini Ballodia (Expert)
Follow

09 September 2017 Kindly refer section 44AB

RAJA P M

RAJA P M (Expert)
Follow

09 September 2017 Sir., We have books of accounts exactly and also the profit less than 8%. U/s 44AB less than 1cr can't tax audit then why if 8%....? Then difference between no fir the both sections...

Ashiwini Ballodia

Ashiwini Ballodia (Expert)
Follow

09 September 2017 Dear Raja P M Ji, Kindly read entire Section 44AB along with 44AD