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Querist : Anonymous

Querist : Anonymous (Querist)

13 March 2014 It Is necessary to make audit if return is not file under 44AD, The turnover of firm is rs. 79,95,654/- & N.P.is 4,50,955/- which 5.64% of turnover.

Nikhil Kaushik

Nikhil Kaushik (Expert)

14 March 2014 well if you are covered under the definition in the eligible business and eligible assessee under 44AD, then you shall have to get the audit done under 44AB where profit is less than 8%

Dintakurthi Tirumala

Dintakurthi Tirumala (Expert)

14 March 2014 Yes, you required to make tax audit since you are liable to section 44AD and you offering lower income than minimum required u/s 44AD and your total income exceeds the basic exemption limit.

So you are required to make tax audit u/s 44AB.

The provision of section 44AD:

Those whose gross turnover/receipts doesn't exceeds the limit prescribed under section 44AB is required to offer their in from business u/s 44AD with minimum profit of 8% on gross receipts or turnover.

If the assessess is liable to offer their income under section 44AD but offering lower income than minimum requirement as per section 44AD is required to

1) Maintain regular books of accounts as specified in section 44AA

And

2) If such assesseess taxable income exceeds basic exemption limit.

This section is applicable to the Individuals,HUFS and Partnership firms other than LLPs

And it is not applicable to the business carrying u/s44AE,professionals,commission or brokerage income and for agency business.

So if your business doesn't covers under the exempted business or exempted assessees then you required to make tax audit u/s 44AB compulsory because of you offering lower income than minimum prescribed in section 44AD and your taxable income is exceeding basic exemption limit.

For any more clarification please refer section 44AD.

OM SAI SRI SAI JAI JAI SAI

Querist : Anonymous

Querist : Anonymous (Querist)

15 March 2014 THANK YOU TO BOTH SIR
FOR YOUR PROPER GUIDANCE

Nikhil Kaushik

Nikhil Kaushik (Expert)

15 March 2014 you are welcome friend.....

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