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

sanjay

sanjay (Querist)
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08 July 2023 IF WE FILE WITH LOSS SAY FOR EG 5000

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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08 July 2023 In case of loss tax audit not required.

sanjay

sanjay (Querist)
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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)
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08 July 2023 Select yes for maintenance of accounts.
No for 44AD.

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