Audit limit
This query is : Resolved
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 ?
25 December 2014
when the gross turnover of business is less then 100 lakhs then sec 44AB tax audit is not applicable.
Message likes :
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25 December 2014
Sir , then how to rule of audit not required display 8% net profit & above. ?
Ganeshbabu K
(Expert)
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
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
CA Ayush Agarwal
(Expert)
28 December 2014
In the Said above Case, Tax Audit is Not applicable as Income Doesnt exceed basic exemption limit.
Regds/CA Ayush
Regds/CA Ayush
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