Applicability of tax audit to partnership firm..

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This discussion clarifies the applicability of tax audits for partnership firms, particularly those involved in trading activities like equities, mutual funds, futures & options, PMS, and commodities. The general consensus is that a tax audit is not applicable unless the firm has previously opted out of Section 44AD of the Income Tax Act within the last five years. Even if a return was filed without showing income at the presumptive rate and without an audit last year, the audit may still not be required if Section 44AD was not opted out of previously.

Khushbu

Khushbu (Querist)
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29 June 2024 Dear sir/ Mam,

A partnership firm having nature of business of trading in equity, mf, f&o, pms etc... as per it's partnership deed.
During fy 23-24 it has t/o as below:

Sale of shares - 3079153
F & O t/o - 28388
PMS Sale value- 3806757
Commodity t/o - 171454

Total t/o - 7085752.

Is tax audit applicable???

Kindly give your valuable suggestion as soon as possible....

Thank you.