Presumptive income n tax audit us 44ad & 44ab

This query is : Resolved

Aniket Tater (Querist)
Follow

01 March 2014 one of my client's firm is having gross turnover of Rs.5200000 and they declared income less than 8%. further the income also does not exceeds the taxable limit. Whether Audit u/s 44AD is required or not? What if the last date for audit is passed n assessee filed his I.T. returns with income less than 8% !

Nikhil Kaushik

Nikhil Kaushik (Expert)
Follow

01 March 2014 well yes as such audit is not required where your total income is less than taxable limit.

However, it shall be open for the AO to review your statements to verify your claim of lower income.