Income tax issue

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

07 March 2014 Dear sir,
Is Tax audit is compulsory for a trader having business income less than 8% of turnover and having turn over less than 100 lakhs ,does the auditor has to file 3CB,3CD Reports to income tax office in this regard?
Let a person doing business having just 5 lakhs turn over & offering income less than 8% of turnover ,To him tax audit is applicable ,auditor has to file 3CD ,3CD reports to it dept?

Nikhil Kaushik

Nikhil Kaushik (Expert)
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08 March 2014 tax audit under 44AD is applicable only where the income is in excess of the exempted limit. Given that your turnover is just 5 lakhs, you need not worry at all as your income (even at 8%) is just Rs 40000 which is less than exempted limited.

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