Is partnership firm required audit u/s 44ab r.w.s. 44ad (5)
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
04 June 2016
dear all,
partnership firm (nature of business builder) , having turn over of 40 lakh, for fy 15-16
actual net profit of rs. 2 lakh, (No Interest and remuneration is paid to partner)
total income before brought forward losses Rs. 2 Lakh
and having brought forward losses of previous year eligible for set off against current year net profit is Rs. 10 Lakh.
Hence gross total income : Nill
Net total income : Nill
Tax liability : Nill
whether partnership firm is required to conduct audit u/s 44AB of income tax act or not. with reference to sec 44AD (5) of income tax act.
However " as per sec 44AD (5) of income tax act " an eligible assessee who claims that his profit and gain from eligible business are lower than the profit and gain specified in sec 44AD (1), and whose total income exceeds the maximum amount which is not chargeable to income tax, shall be required to keep and maintain account and other document as per sec 44AA (2), and get them audited and furnish a report of such audit under sec 44AB of income tax act"
is tax audit is required in present case.
partnership firm (nature of business builder) , having turn over of 40 lakh, for fy 15-16
actual net profit of rs. 2 lakh, (No Interest and remuneration is paid to partner)
total income before brought forward losses Rs. 2 Lakh
and having brought forward losses of previous year eligible for set off against current year net profit is Rs. 10 Lakh.
Hence gross total income : Nill
Net total income : Nill
Tax liability : Nill
whether partnership firm is required to conduct audit u/s 44AB of income tax act or not. with reference to sec 44AD (5) of income tax act.
However " as per sec 44AD (5) of income tax act " an eligible assessee who claims that his profit and gain from eligible business are lower than the profit and gain specified in sec 44AD (1), and whose total income exceeds the maximum amount which is not chargeable to income tax, shall be required to keep and maintain account and other document as per sec 44AA (2), and get them audited and furnish a report of such audit under sec 44AB of income tax act"
is tax audit is required in present case.
CA Rohit Jain
(Expert)
04 June 2016
yes since there is carry forward and set off of losses ... Audit us 44AB is must
Dhirajlal Rambhia
(Expert)
16 October 2021
Not necessary, as the total income does not exceed BEL.
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