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Proprietorship concern is auditable or not

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This query is : Resolved

Amit (Querist)

27 July 2011 I have five firms which are under my proprietorship. Out of five, three are eligible for audit because sale exceeds audit limit and the remaining two are below audit limit figure. Whether I would have to get all the firms audited or only three firms audited for income tax return filing.

Amol Gopal Kabra (CA,CS,DISA)

Amol Gopal Kabra (CA,CS,DISA) (Expert)

27 July 2011 You have to get all the firms audited. But in case of the firms having turnover less than 60 lakhs, you can go for 44AD by showing income @ 8% on the turnover.

CA Ashwani Agarwal

CA Ashwani Agarwal (Expert)

27 July 2011 My view is different, Limits u/s 44AB and 44AD are given person wise and not business wise.

So in case a person is having 5 business his limit of 5 business will be aggregated for the purpose of 44AB. If the same is above 60 lakhs then he has to get all his business audited.

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