Audit

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Dhola Nilesh (Querist)
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26 September 2013 dear sir

Mr.X have doing business of traveling and following information is furnished in AS 2012-13.
Turn over 51 lacs
net profit Rs.76000
is he liable to audit and maintain books
according to sec 44AD if net income is not exceed to slab than it does not rerquired to audit is it true?
thanks

Nikhil Kaushik

Nikhil Kaushik (Expert)
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30 September 2013 You are right in interpreting section 44AD. In this case, audit won't apply. However, you need be very careful in such situations.

If during scrutiny, it is found that taxable income was higher than as disclosed by the assessee, it would lead to penalties.

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