Tax audit requirement

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

08 March 2017 A is an homeopath doctor practicing in Delhi. His total fee during current FY 2016-17 is likely to be 20 lakhs. This includes medicines he dispenses to his patients, but separate charge is not made for medicines, but included in gross fee
He maintains most elementary record to arrive at profit like fee receipts/ expense vouchers for major expenses and banks all his receipts on daily or twice a week. Expenses are by cheque or credit card. Annual profit is worked out based on these records.
He files his tax return providing details of his gross income/ expenses / depreciation etc, does not opt for sec 44ada (presumptive income), files ITR4 but his net profit comes below 50% of gross income. Is it mandatory for him to get accounts audited and file tax audit report? He is below tax audit limit as his gross income is only 20 lakhs?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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08 March 2017 Tax audit applicable to him as he is declaring profit less than 50% of gross income.

Querist : Anonymous

Querist : Anonymous (Querist)

08 March 2017 Even if he is not opting for presumptive income u/s 44ADA .Does this mean any professional whose income is less than 50% of his gross earnings has to have tax audit compulsorily?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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08 March 2017 Tax audit not applicable if he is opting for 44ADA and declaring not less than 50% profit.

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