banner_ad

Rules for proprietorship firm

This query is : Resolved 
Avatar

Querist : Anonymous

Profile Image
Querist : Anonymous (Querist)
09 August 2011 Dear Sir,
Please tell me that is there any rules that if your firm's income[net profit] is less than 8% of your sales,than you have to audit your accounts by C.A.?And in case your firm had made loss,than also you have to audit youe books?If yes then from which year this rules are applicable?please help.
Profile Image

CA Aditya Goel

Profile Image

CA Aditya Goel (Expert)
09 August 2011 as per sec 44AD In case of individual and HUF (for business and not for professional)
they dont need to get accounts audited if they showing profit atleast 8% of gross turnover.
they need to get their acc audited u/s 44AB by CA if they claim less than 8%.

But if their net profit is less than the exemption limit then no need for audit.
as this sec applicable when taxable income is more than exemption limit.
Profile Image

CA PARAS BAFNA

Profile Image

CA PARAS BAFNA (Expert)
11 August 2011 The rule is applicable from Assessement year 2011-12 or say in respect of the income of the financial year 2010-11.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now


CCI Pro
Join CAclubindia WhatsApp Finance Community & stay updated with the latest TAX news, compliance alerts and important updates all in one place!


Similar Resolved Queries


loading


Unanswered Queries


banner

Trending Online Classes

view all classess

CCI Pro
Meet our CAclubindia PRO Members
Subscribe Now

Follow us
add to google news



Answer Query



Quick Links



Browse by Category




Latest Job Openings

View all
Company
14 May 2026
Senior Accounts Executive

Karan Gupta & Co.

New Delhi

Graduate (Any)

View Details
Company
ARTICLESHIP 31 May 2026
Article Assistant

KPRS And Associates

New Delhi

CA Inter

View Details
Company
10 May 2026
Finance specialist

Right way solution

Ajmer

CA

View Details
Company
14 May 2026
Senior Associate

ABHISHEK SHANKAR AGARWAL & ASSOCIATES

Kolkata

CA

View Details
Company
23 May 2026
Article Assistant

Geeta Manchanda & CO.

New Delhi

CA Inter

View Details
Company
26 May 2026
Senior Accountant cum purchase Manager

Vardhaman Group of India

Pimpri Chinchwad

CA Inter

View Details
Company
ARTICLESHIP 15 May 2026
Audit Assistant / Article Trainee / Intern

SSGS and Associates

Chennai

CA Inter

View Details
Company
09 May 2026
Audit Manager

Kanna and Associates

Coimbatore

CA Inter

View Details