Is audit u/s 44ab required
Querist : Anonymous
There is a newly established partnership firm on 31-1-2013 for doing retail medical business and its business started from 15-2-2013. In the year 2012-13 it has only Rs.26,000 sales and it has nearly Rs.20000 loss(after depreciation and no remuneration or interest receiving by the partners) as on 31-3-2013 from that business.
As per section 44AD each business income having assessees who are not liable for tax audit u/s 44AB as per the act must and should be offer minimum of 8% taxable income on gross sales for the tax purpose. As well as it giving another exemption those who didn't want to offer such minimum income as per section 44AD has required to maintain regular books of accounts must and should and if their total income exceeds basic exemption limit then required to do tax audit u/s44AB.
So in our case basic exemption limit is zero and the firm has maintaining regular books of accounts and its total income is below exemption limit(i.e it has net loss).
So my query is, is that firm required to do tax audit u/s44AB or just it can file its return of income with loss and carry forward for future years.
Thanking you,
However, remuneration paid to praters is allowed as deduction from such profit.
so get books audited and carry forward the loss.
Querist : Anonymous
OM SAI SRI SAI JAI JAI SAI
so if partnership firm claims profit below 8% of gross turnover, it has to get books of accounts audited.
Querist : Anonymous
OM SAI SRI SAI JAI JAI SAI
Querist : Anonymous
OM SAI SRI SAI JAI JAI SAI
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