Profit lower than 8% of turn over

This query is : Open

monika (Querist)
Follow

04 August 2016 IF ANY ONE HAVE BUSINESS TURN OVER OF RS. 9000000 (90 LAKH) BUT HE HAVE NET PROFIT ONLY RS. 180000 (2%OF TURN OVER)
SO QUESTION ARISE
. IS AUDIT COMPULSORY ?
. CAN HE FILE ITR 4 ?

CA ABHAY GUPTA

CA ABHAY GUPTA (Expert)
Follow

04 August 2016 nope tax audit not applied..

monika

monika (Querist)
Follow

04 August 2016 BUT SIR IF PROFIT IS LOWRE THAN 8% 44AB APLIED ?

CA ABHAY GUPTA

CA ABHAY GUPTA (Expert)
Follow

04 August 2016 tax audit is compulsory in case If such person claims that the profits are lower than the profits computed under 44 AD and if his income exceeds the maximum amount not chargeable to tax in relevant year... In your case profit is less than 8% but it is less than the limit i. e. Rs 250000/- which is chargeable to tax...

monika

monika (Querist)
Follow

04 August 2016 IF OTHER SOURCE INCOME IS 80000 + BUSINESS INCOME IS 180000
TOTAL 260000 WHAT WILL BE IN THIS CONDITION?

CA CMA CS Ram Pavan Kumar Melam

CA CMA CS Ram Pavan Kumar Melam (Expert)
Follow

04 August 2016 If your total income exceeds the maximum amount which is not chargeable to income-tax, then ......in your situation tax audit is applicable. If you show only Rs. 180,000 (2% on turnover) as your net profit, then you need to maintain books of account.

CA ABHAY GUPTA

CA ABHAY GUPTA (Expert)
Follow

04 August 2016 if gross income i. e. including other source income exceeds thus tax audit is mandatory

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now