Section 44ab for turnover below rs. 1crore

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Querist : Anonymous

Querist : Anonymous (Querist)

02 March 2014 Is it compulsory to get my accounts audit if my turnover is below one crore and i have declared my total income below 8% of total turnover and also below taxable limit for A.Y. 2013-14. More clearly, my total turnover is 75 lacs and have declared my net profit of rs. 1,90,000. My total income is shown Rs. 1,99,000 which is below the maximum amount which was not chargeable for tax for AY 2013-14. Is audit u/s 44AB compulsory in this case?

Nikhil Kaushik

Nikhil Kaushik (Expert)
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02 March 2014 no..in such case audit is not required. Audit shall apply only where taxable income is more than the exempted limit.

However, please note that AO shall have the right to your estimation of income

Querist : Anonymous

Querist : Anonymous (Querist)

03 March 2014 Thanks. Your replies are praiseworthy and also to the point. But I want to know what AO has right in this case. Can the AO give pressure to show income at least 8% u/s 44AD. But how and under which section AO can do this, if the Act provide me to do so.

Nikhil Kaushik

Nikhil Kaushik (Expert)
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03 March 2014 well AO has a right to verify the claims you make - if you file the return, then the assessment can be done under 143.

where return is not filed, AO can make use section 131, 132, 133 and 142.

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