44AB (Tax Audit)

On a plain note, YES it attracts audit under 44AB. 

however, incase if the receipts were through specified modes (ECS, and other online modes) then, not Audit reuiqred (as the percentage of profit mentioned in such cases under 44AD is 6%)

if not, then the financials are to be audited u/s 44AB and form 3CB/CD is mandatory. 

As per SECTION 44AB of the Income Tax Act 1961, Audit is mandatory for :

1). Taxpayers carrying on BUSINESS whose Turnover exceeds ₹1 crore in the PY.

2). Taxpayers carrying on PROFESSION whose Turnover exceeds ₹ 50,00,000.

if profit is below 8% or 6% in this case audit is mandatory ???

Originally posted by : Faheem Akram
	if profit is below 8% or 6% in this case audit is mandatory ???

Yes. Audit is mandatory when the profits are less than the percentage specified, and your turnover is less than 2 crores, 

 

Are you talking about SECTION 44AD 8%/6% ?

no ....i am talking about ITR3

ITR 3 is for filing of return only. 

When the net profit offered by you is less thanm 6%/8% as per Section 44AD, then you should get the same audited u/s 44AB and file Form 3CB/CD along with the ITR3 you are filing. 

i think this legal requirement for 44AB to be removed?

Tax audit applicable in following situations:
1) in case of business, turnover exceeds 1 Crore rupees
2) in case of profession, turnover exceeds 50 lacs
3) if assessee violates the provisions u/s 44AD/ 44ADA

i assume
you are doing business and turnover is less than 1 Crore so tax audit is NOT applicable...

if your doing profession then Tax Audit is Applicable

If you opted for Presumptive and offer less than 8% of turnover (6% in certain cases) as Business income then Tax audit is Applicable