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44AB Audit

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Rajib Saha

Accounts Officer

239 Points Posted on 25 September 2020

Dear Sirs,

One of my friend runs a proprietary business - Custom House Agency. Turn Over in FY 19-20 was Rs. 85 lakh ( approx), profit being roughly about Rs. 5.00 lakh. About 40% of the expenses are made in Cash. My query is whether he is supposed to get his Accounts audited u/s 44AB of the Act.

Replies (4)

Quick Summary

This discussion explores whether a proprietary business, Custom House Agency, requires an audit under Section 44AB of the Act. With a turnover of approximately Rs. 85 lakh and a profit of Rs. 5 lakh in FY 19-20, and around 40% of expenses paid in cash, the query centres on the audit applicability. While one opinion suggests an audit is required due to profit margins, others point to the turnover threshold of Rs. 1 crore for mandatory tax audits under Section 44AB.