Audit
This query is : Resolved
05 April 2016
if business turnover is 80 lakh , and profit is only 1% rs. 80255 ,
i have keep books of account
so qustion is
1. is it compulsory to audit ?
2. can i file regular itr 4 return ?
i have keep books of account
so qustion is
1. is it compulsory to audit ?
2. can i file regular itr 4 return ?
05 April 2016
Yes Audit Applicable if profit is less then 8%. ITR-4 is to be filed after filling audit report u/s 44AB.
05 April 2016
but sir acording section 44AB if business turnover is is greater than 1 crore , audit is compulsory
see this article
https://www.charteredclub.com/tax-audit/
see this article
https://www.charteredclub.com/tax-audit/
05 April 2016
IT FOR COMPULSORY AUDIT
CHECK U/S 44AD
https://www.charteredclub.com/section-44ad/
CHECK U/S 44AD
https://www.charteredclub.com/section-44ad/
05 April 2016
sir if i have not choose 44AD option ,
choose maintain books of acount option .,can i file regular itr 4 return, with out audit
choose maintain books of acount option .,can i file regular itr 4 return, with out audit
05 April 2016
As per Sub Section (5) of section 44AD-
Notwithstanding anything contained in this section
an eligible assessee who claims that his profits and gains from the eligible business are lower than the profits and gains specified in sub-section (1) of Section 44AD.
whose total income exceeds the maximum amount which is not chargeable to income tax.
shall be required to keep and maintain such books of account and other documents as required under sub-section (2) of section 44AA.
get them audited and furnish a report of such audit as required under section 44AB
Notwithstanding anything contained in this section
an eligible assessee who claims that his profits and gains from the eligible business are lower than the profits and gains specified in sub-section (1) of Section 44AD.
whose total income exceeds the maximum amount which is not chargeable to income tax.
shall be required to keep and maintain such books of account and other documents as required under sub-section (2) of section 44AA.
get them audited and furnish a report of such audit as required under section 44AB
05 April 2016
If the assessee claims that his total income is lower than the income deemed under section 44AD and his total income is chargeable to tax, then he shall have to get his accounts audited under section 44AB and furnish the prescribed report within prescribed time.
Thus as per provisions of Section 44AD r/w Section 44AB person who satisfy all of the following conditions is required to get his books of accounts audited under Section 44AB.
Person is an eligible assessee. Eligible Assessee means-
An individual.
Hindu undivided family.
A partnership firm, but not a limited liability partnership firm. who is a resident.
Person is carrying on an eligible business. Eligible Business means-
Any business except the business of plying, hiring or leasing goods carriages referred to in section 44AE.
whose total turnover or gross receipts in the previous year does not exceed an amount of one crore rupees.
The profits of an assessee engaged in eligible business under the head ‘Profits and gains from business and profession less than 8% of the total turnover of the assessee i.e. less than the profits deemed under this section.
Total Income of person is also more than the maximum amount which is not chargeable to tax.
Thus as per provisions of Section 44AD r/w Section 44AB person who satisfy all of the following conditions is required to get his books of accounts audited under Section 44AB.
Person is an eligible assessee. Eligible Assessee means-
An individual.
Hindu undivided family.
A partnership firm, but not a limited liability partnership firm. who is a resident.
Person is carrying on an eligible business. Eligible Business means-
Any business except the business of plying, hiring or leasing goods carriages referred to in section 44AE.
whose total turnover or gross receipts in the previous year does not exceed an amount of one crore rupees.
The profits of an assessee engaged in eligible business under the head ‘Profits and gains from business and profession less than 8% of the total turnover of the assessee i.e. less than the profits deemed under this section.
Total Income of person is also more than the maximum amount which is not chargeable to tax.
05 April 2016
it is condition for section 44AD
but i dont want choose section 44AD
but i dont want choose section 44AD
05 April 2016
Section 44AD will applicable If the turnover is less than 1 crore, and if profit less than 8% of turnover
05 April 2016
in case of if income does not exceed total amount chargeable to income tax (income less than basic exemption limit) or firm is making losses, no need to get accounts audited or maintain the accounts.
05 April 2016
No need for audit as profit is below taxable limit... but chances for selecting in scrutiny will highest..
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