Tax audit or not

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King Raja (Querist)

04 March 2018 Dear Sir's
I am doing retail busines, Turnover less than 1 crore fy 16_17 & net profit less than 8% it is tax audit case or non tax audit.

Miss Mansi Bhojani

Miss Mansi Bhojani (Expert)

04 March 2018 It will be audit under section 44AD if you show it income as less than 8% of your turnover.

King Raja

King Raja (Querist)

04 March 2018 Tax audit not applicable for Turnover less than 1 crore and net profit less than 8%

Section 44 of Income Tax Act, 1961 essentially deals with sections related to audit, presumptive taxation and special provisions related to computation of income for business purpose. Till FY 2015-16, eligible assesses having turnover less than Rs 1cr and net profit less than 8% cannot were not allowed to avail the presumptive taxation scheme and had to be mandatorily audited by chartered accountant. This article tries to analyse the position brought by amendment to Section 44AB and 44AD by Finance Act, 2016. In my case above method aplicable or not

Miss Mansi Bhojani

Miss Mansi Bhojani (Expert)

06 March 2018 Sir in your case, as you an individual doing retail business for the FY 2016-17 and has turnover less than 1 crore then as per section 44AD your income should be min 8% of net profits or above 8% orelse you will need to do audit of your business.

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