Clause-8 Tax Audit report

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This discussion clarifies which clause applies to a Tax Audit Report when turnover exceeds specified limits, particularly concerning Clause 8. It addresses a scenario with a turnover of INR 1.50 crore and a net profit of INR 4.00 lakh, where the business has not previously opted for Section 44AD and does not wish to do so this year. The primary focus is on determining the correct sub-clause under Section 44AB(a) and understanding the conditions for its proviso.

nitin gulati

nitin gulati (Querist)
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28 August 2023 Mr X turnover 1.50 Lac (all cash) and NP 4.00 Lac in FY-22-23 doing business

Never opted 44AD earlier

and do not want to opt 44AD current year .

Which clause will be applicable as per clause 8 in Tax audit report

1.Clause 44AB(a)- Total sales exceeding specified limits

2.Clause 44AB(a)proviso-

Thanks In Advance

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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28 August 2023 I assume turnover 1.50 crore (in query it's stated as 1.50 lacs).
In such a case:
1.Clause 44AB(a)- Total sales exceeding specified limits applicable.

nitin gulati

nitin gulati (Querist)
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29 August 2023 Sir
when will we use the clause

1.Clause 44AB(a)proviso-
Kindly clear.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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29 August 2023 Total sales exceeding 1 crore for which tax audit applicable.

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