Tax audit u/s 44ab

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Bhavyesh Mehta (Querist)

11 March 2013 One firm whose total sale are Rs.1512147 and profit is below 8% around Rs 165254 so , in that case Tax audit applicable to firm u/s 44AB. They do not file their return u/s 44AD. Reply as soon as possible.

CA Suraj Lakhotia

CA Suraj Lakhotia (Expert)

11 March 2013 Section 44AB provides as under -

"if the profits and gains from the business are deemed to be the profits and gains of such person under section 44AD and he has claimed such income to be lower than the profits and gains so deemed to be the profits and gains of his business" shall get his accounts audited.

Bhavyesh Mehta

Bhavyesh Mehta (Querist)

11 March 2013 So, It is not stated in section 44AB that If profit is below 8% then Assessee has required to do Audit. This condition is stated in Section 44AD Am i right? Reply fast

CA Suraj Lakhotia

CA Suraj Lakhotia (Expert)

11 March 2013 As per Section 44AD, 8% shall be deemed to be the profits.

44AB mentions profit deemed u/s 44AD i.e. 8%.

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