Audit limit

This query is : Resolved

gk (Querist)
Follow

25 December 2014 f.y. 2013-14 A Individual proprietor trading business sales is 30 lac & end of the year profit is under 8% like 145000. Is there Audit be compulsory ?

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
Follow

25 December 2014 when the gross turnover of business is less then 100 lakhs then sec 44AB tax audit is not applicable.

Message likes : 1 times

gk (Querist)
Follow

25 December 2014 Sir , then how to rule of audit not required display 8% net profit & above. ?

Ganeshbabu K

Ganeshbabu K (Expert)
Follow

25 December 2014 Dear,.Please refer to Section 44AD(5)

Dear GK

Yes, you are correct,

If turnover not exceeds Rs.100 lakhs assesse atleast need to offer profit @ 8% of turnover
.
.
1)Tax audit applicable under section 44AB,

2)If assess declared income less than 8% and his total income exceeds the maximum amount chargeable to tax.

So in case of individual no tax audit under 44AB applicable if total income not exceeds basic exemption limit
.
.
But if his total income exceeds basic exemption limit

1)He need to maintain books so as to assess income

2)He need to get his books audited by chartered accountant under section 44AB