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Will audit is compulsory or not

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

30 September 2013 a senior citizen in ay 2013-14 has following income form various heads

pension = Rs 230000/
business turnover
2020000/ & profit is= Rs 40000/
now the question is audit u/s 44AB is compulsory or not?

Dintakurthi Tirumala

Dintakurthi Tirumala (Expert)
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30 September 2013 Yes, audit is compulsory, Because of as per section 44AD you have to offer minimum income from business is 8% on turnover means Rs.1,61,600/-. But you offering lower income than minimum required and your gross total income exceeds the basic exemption limit so you required to make tax audit u/s 44AB compulsory. In case if you want to offer such Rs.1,61,600 income from business even though profit as per books is lower than that then not required to make tax audit.

OM SAI SRI SAI JAI JAI SAI

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