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44AB TAX AUDIT

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Mudassir Jubilee

21 Points Posted on 04 January 2021

I'm maintaining books for my business and my profit is less than 8%. I will file ITR 3 and show profit below 8%, is tax audit u/s 44AB applicable to me?

Replies (7)

Quick Summary

This discussion clarifies the applicability of the 44AB tax audit. Generally, an audit is required if your gross turnover exceeds £1 crore. However, if your gross turnover is below this threshold, a tax audit is typically not necessary, even if you report a profit below 8%. Special provisions exist for presumptive taxation, where reporting a lower profit might trigger an audit regardless of turnover.

Ronak Jain

30 Points Posted on 04 January 2021

Yes, as far as I know

Tanvi Sharda

42 Points Posted on 04 January 2021

If your gross turnover / gross receipts are less than or equal to 1 crore then no need of tax audit.

Tax audit is applicable when gross turnover exceeds 1 crore.

Ronak Jain

30 Points Posted on 04 January 2021

If you read the provisions, it is also given that, a person option for presumptive basis and showing lower profit, is subject to tax audit
No turnover criteria in that case

Tanvi Sharda

42 Points Posted on 04 January 2021

As per my knowledge you can show profit below 8% without tax audit when your gross turnover is less than 1 crore

ayusmita

Tax consultant

3466 Points Posted on 04 January 2021

If you want you can other wise not required
and for financial year 19 -20 audit applicable is
rs 5cr if the taxpayers cash receipts are limited to 5% of the gross receipts or trunover and if the taxpayers cash payment are limited to 5% the aggregate payment