Is Tax audit applicable in a case where there is loss in a firm(i.e. Profit is less than 8%) and no turnover in such firm and the assessee receives salary more than maximum amount chargeable to tax. Is the assessee covered in subsection (4) and consequently in subsec (5) and required to get Tax Audit done??
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Applicability of audit in case of individuals u/s 44ad
Replies (1)
If you have opted for Presumptive taxation under section 44AD, then you need to compulsorily declare minimum profit of 8% of your Turnover or gross receipts as the case may be. If you are not declaring that much profit you should undergo Tax audit. And as you mentioned in your query, that assessee receives salary more than specified limit, I raise a doubt how can an assessee receive salary without having any income?
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