AUDIT APPLICABILITY IN CASE OF SMALL PARTNERSHIP FIRM HAVING TO <1 CR

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This discussion clarifies audit applicability for small partnership firms with turnovers below £1 crore. Generally, if profits are less than 8% of turnover, a tax audit might be required unless the firm files with a loss. Filing ITR-5 with a balance sheet and P&L is possible, but you must select 'maintain accounts' and not opt for presumptive taxation under Section 44AD.

sanjay

sanjay (Querist)

08 July 2023 partnership firm having turnover of 10 lac and profit is of rs 3000 whether audit required or not ??

can we file itr 5 with normal balance sheet and p and l ?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

08 July 2023 Less than 8% profit tax audit required.

sanjay

sanjay (Querist)

08 July 2023 IF WE FILE WITH LOSS SAY FOR EG 5000

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

08 July 2023 In case of loss tax audit not required.

sanjay

sanjay (Querist)

08 July 2023 thanks, if we file with loss and fill balance sheet and profit and loss account figures in itr 5 then we have to select maintain accounts us 44aa or not ?? and we have to select filing return us 44ad as no ??

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

08 July 2023 Select yes for maintenance of accounts.
No for 44AD.

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